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University  of  California. 


GIFT    OF 


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UNIVERSITY    OF    CALIFORNIA 


DEPARTMENT   OF   EDUCATION 


No. 


GIFT  OF  THE   PUBLISHER 


S  ^  ^ .  Received       / 


U^'ILUAMS   &    ROGERS   SERIES 


OFFICE  EOFTi:^E 


AND 


BOOKKEEPING. 

A  :vrKTIIOD  OF  TEACHING  THE 

SCIENCE  OF  ACCOUNTS 

AND   OF   ILLUSTRATING   THE 
ROUTINE    IN   BUSINESS   OFFICES. 

For  use  in   Business  Colleges  and  Commercial  Departments 


COIVlF=l_E-rE:     COURSE. 


HV 


GEORGE   W.    SCHWARTZ, 

PK1.N(  IPVL  COMMKBCIAL  DEPARTMENT, PUBLIC  SCHOOLS, 

Louisville,  Kv.,  and  Expert  Accountant. 


SCRIPT   H.I.USTItATIO.N'S    !{V   K.   I'.   MILLS. 


NEW  YORK   .:•   CLNCINXATI    .;•  CHICAUO 

AMERICAN    HOOK    COMPANY 


f.'.  'c^-y^ 


CcpmionT,  ISOr  and  1898, 

BY 

WHXIAMS  &   KOOERS. 

W.    P.   2 


PREFACE. 

Pedagogical  principles  require  that  correct  mental  impressions  of  business  transactions, 
and  the  documents  that  vouch  for  such,  be  produced  in  the  mind  of  the  student  before 
he  attempts  to  make  a  record  of  them.  The  methods  employed  to  produce  such  impres- 
sions may  vary;  in  this  work  it  was  thought  best  to  reproduce  the  routine  work  of  the 
bookkeeper  as  nearly  as  possible.  To  that  end,  and  for  that  purpose,  hundreds  of  elegantly 
engraved  business  documents  accompany  this  book,  which  represent  the  proprietor's  incom- 
ing mail,  and  from  which  tlie  student  —  his  bookkeeper — is  to  make  entries.  In  addition, 
the  necessary  blank  forms  are  furnished,  and  the  student  is  required  to  write  up  all  the 
documents  tluit  represent  the  jiroprietor's  outgoing  mail,  and  to  make  the  records  therefrom. 

When  the  student  has  had  sufficient  practice  in  making  records  from  business  docu- 
ments they  are  dispensed  with,  as  it  is  believed  that  the  advanced  student  will  derive  valu- 
able mental  discijiline  in  making  records  from  historical  data;  besides,  the  use  of  vouchers 
with  which  he  has  become  familiar,  will  tend  to  make  the  work  monotonous  if  continued 
too  long. 

The  independent  price  lists,  the  uniform  script  in  the  text  book  aud  on  all  the  vouchers, 
and  the  persistent  emphasis  that  is  placed  on  the  importance  of  superior  mechanical  work 
can  not  fail  to  have  a  beneficial  influence  on  the  student's  work. 

The  Introductory  Course  of  this  work  came  from  the  press  one  year  ago,  and  was  most 
enthusiastically  received  by  teachers.  Since  then  there  have  been  added  130  pages  devoted 
to  Commission,  Department  Store,  Manufacturing,  Corporation  and  Banking  businesses. 
Many  modern,  labor-saving  features,  which  have  never  before  been  given,  are  introduced, 
and  it  is  believed  that  they  will  meet  the  approval  of  teachers.  Special  attention  is  called 
to  the  practical  treatment  of  corporation  bookkeeping. 

The  author  and  publishers  hereby  express  their  thanks  to  the  many  teachers  who  have 
used  the  Introductory  Course  in  the  past  year,  and  trust  that  this,  the  Complete  Course, 
■will  prove  equally  satisfactory  to  all  who  use  it. 

Rochester,  N.  Y., 
August  15,  1898. 


221704 


SUGGESTIONS  TO  THE  STUDENT. 


Act'Ui'iicy.  Tlio  first  essential  of  a  bookkeeper  is  to  be  absolutely  accurate.  To  acquire 
the  haliit  of  being  accurate  will  require  constant,  persistent  effort  on  your  part.  Learn  to 
concentrate  your  thoughts  ui)on  your  business — that  of  learning  office  routine  and  book- 
keeping—  and  never  permit  your  mind  to  wander  therefrom  during  your  business  (study) 
hours.  It  is  in  bookkeeping  as  in  medicine:  "An  ounce  of  prevention  is  worth  a  pound  of 
cure; "  careful  thinkinci  before  doing  will  prove  a  good  preventive  of  errors,  while  much  worry 
and  waste  of  valuable  time  will  be  the  cure  for  errors  once  made.  It  is  better  to  spend  a 
minute  ia  thinking  before  doing  than  to  spend  an  hour  or  more  in  detecting  an  error  that 
has  been  made.  Ini])rovcment  is  the  direct  result  of  thought  and  intelligent  application; 
so,  if  you  desire  to  im])rove  you  must  think,  think,  think  before  acting.  A  practical  knowl- 
edge of  commercial  calculations,  and  the  ability  to  add  correctly  with  ease  and  certainty  are 
absolutely  essential  to  insure  accuracy  in  bookkeeping. 

Keatness.  A  plain,  business  style  of  writing  is  the  first  and  most  important  essential 
to  neatness  in  bookkeeping.  To  acquire  a  good  business  style  of  writing  will  require  much 
thought  and  practice.  The  scrijit  plates  throughout  the  book  will  furnish  you  food  for 
thought  and  material  for  practice.  Tlie  arrangement  of  the  work  and  attention  to  details 
are  also  very  im])ortant  and  should  receive  considerable  of  your  attention.  Remember  that 
"perfection  is  made  up  of  trifles,  and  ]>erft'ction  itself  is  no  trifle,"  hence,  the  importance  of 
observing  all  the  details  and  instructions  that  are  given.  Last,  but  not  least,  neatness  will 
assist  you  in  acquiring  accuracy,  besides  errors  are  more  readily  detected  in  neatly  kept  books 
than  in  those  that  arc  not  neatly  kept. 

Dispatch.  First  of  all  be  accurate;  second,  be  neat,  and  let  speed  and  facility  come 
with  practice,  cxj)crienco,  and  a  thorough  familiarity  with  your  business.  Kemcmber  that 
dispatch  without  accuracy  and  neatness  is  absolutel}'  worthless.  An  inaccurate  clerk  or  book- 
keeper is  worse  than  worthless,  while  a  careless,  slovenly  bookkeeper  is  very  soon  displaced 
by  one  who  is  accur.ate  and  neat.  Never  hurry  in  your  studies.  It  is  better  to  have  your 
mind  filled  with  ])roj)erly  assimilated  knowledge  than  to  have  your  books  filled  with  work 
that  you  do  not  understand. 

Your  Tcaclier.  The  duty  of  your  teacher  is  to  guide  and  direct  you  in  your  studies, 
but  oiot  to  do  your  work  for  you,  as  thereby  he  would  be  doing  you  a  positive  injury. 

Yourself.  Hely  upon  yourself.  Bo  industrious.  Do  not  injure  and  disgrace  yourself 
or  waste  your  time  by  trying  to  copy  from  others,  as  it  can  not  be  done  in  this  system  with- 
out being  detected. 


OFFICE  ROUTINE  AND  BOOKKEEPING. 


Bookkeeping  is  the  art,  method  or  practice  of  recording  Dusiness  transactions.  By  the 
term  business  transactions  is  meant  dealings  between  two  or  more  persons.  The  object  of 
keeping  books  is  to  enable  the  proprietor  to  ascertain  at  any  time  with  certainty  and  ease 
any  particulars  regarding  the  business. 

Methods.  There  are  two  methods  of  keeping  books,  termed  Double  Entry  and  Single 
Entry.  In  Double  Entry  Bookkeeping  accounts  are  kept  with  persons  and  things.  In 
Single  Entry  Bookkeeping  accounts  are  kept  with  persons  only.  Single  Entry  will  be  intro- 
duced later.     The  following  pertains  to  Double  Entry. 

Books  required.  Originally  three  books  were  used  in  recording  business  transactions; 
viz,  Day  Book  or  Blotter,  Journal  and  Ledger.  The  Day  Book  and  Journal  are  now  usually 
combined.     This  form  of  book  is  known  as  the  Day  Book-Journal. 

The  Day  Book-Journal  contains  a  statement  of  the  business  transactions  and  the 
Debits  and  Credits  arising  therefrom,  arranged  in  convenient  form  for  transferring  to  the 
Ledger.  Deciding  upon  and  arranging  the  Debits  and  Credits  in  the  Day  Book-Journal  is 
called  Joiirnaliziny.     Debit  is  abbreviated  Dr.     Credit  is  abbreviated  Cr. 

The  Ledger  is  the  book  of  accounts. 

Au  Account  consists  of  Debits  and  Credits  of  a  like  nature,  systematically  arranged, 
and  is  a  statement  of  debt,  either  owed  to  the  business  or  owed  by  the  business.  The  left 
side  of  an  account  is  the  Debit,  and  the  right  side  the  Credit.  Transferring  the  debits  and 
credits  to  the  projier  accounts  in  the  Ledger  from  any  other  book  is  called  Posting. 

GENERAL   RULES   FOR   DEBITING   AND  CREDITING. 

1.     Debit*   the  account  that   has   received     2.     Credit  the  account   that  has  supplied 
value,  iecattse  it  has  become  indebted  to  value,  because  the  business  has  become 

the  business.  indebted  to  it. 

*  To  debit  an  account  means  to  charge  it  with  the  value  received.  Many  bookkeepers  use  the  term 
duirge  instead  of  debit. 

TO  THE   STUDENT. 

Model  Set.  On  the  following  four  pages  a  set  of  books,  consisting  of  a  Day  Book- 
Journal  and  Ledger,  is  illustrated.  The  object  of  this  set  is  to  give  you  a  general  idea  of 
the  arrangement  and  appearance  of  a  simple  set  of  books;  also  to  serve  as  a  model,  which 
you  are  to  copy  a  suflicient  number  of  times  to  enable  you  to  acquire  a  neat,  business-like 
stvle  of  writing,  to  arrange  your  work  properly,  and  to  enable  you  to  make  good  figures 
rapidly. 


OFFICE    KOUTINK    A.\l>    HOOKKEEI'ING. 


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FIRST   POSTING   EXERCISE. 

In  performing  the  work  outlined  lierewith,  read  the  first  direction,  then  do  the  work  as 
instructed.  Read  the  second  direction  and  do  the  work.  Continue  taking  up  tlie  directions 
one  at  a  time,  performing  the  work  as  directed.  Consult  your  teacher  on  any  point  you  do 
not  fully  understand. 

1.  Copy  the  Model  Day  Book-Journal  given  on  pages  3  and  3,  on  journal  paper,  observing 
every  detail  closely  as  you  proceed.  3.  Write  the  headings  or  names  of  accounts  on  ledger 
paper  as  you  find  them  in  the  Model  Ledger,  given  on  pages  4  and  5.  3.  Begin  with  the  first 
debit.  Cash,  in  the  Day  Book-.Journal,  trace  it  to  the  Cash  account  in  the  Model  Ledger, 
after  which  post  it  to  your  Ledger  (on  the  Dr.  side  of  Cash  account)  as  you  see  it  in  the 
Model  Ledger.  4.  In  your  Day  Book-Journal,  in  the  column  headed  L.  F.  (Ledger  Folio) 
write  the  number  (1)  of  the  page  to  which  you  have  posted,  opposite  the  word  Cash,  to  show 
that  it  has  been  posted.  Writing  the  number  of  the  page  opposite  an  item  in  the  Day  Book- 
Journal  or  any  other  book  to  show  that  it  has  been  posted  is  termed  checking  or  post  marking. 
5.  Take  the  first  credit,  Wm.  Wood,  trace  it  to  Wm.  Wood's  account  in  the  Model  Ledger, 
and  post  in  your  Ledger  (on  the  credit  side  of  Wm.  Wood's  account)  as  shown  in  the  Model 
Ledger.  6.  Check  in  your  Day  Book-Journal  by  placing  1  in  the  column  to  the  left  of 
Wm.  Wood's  name. 

Trace  the  second  debit.  Merchandise,  in  the  Day  Book-Journal  to  the  Merchandise  account 
in  the  Model  Ledger.  2.  Post  to  your  Ledger  (on  the  Dr.  side  of  Merchandise  account) 
referring  to  the  Model  Ledger.  3.  Chock  in  the  Day  Book-Journal  oj^posite  the  item  just 
posted.  4.  Trace  the  credit,  Cash,  to  the  Cash  account  in  the  Model  Ledger.  5.  Post  to 
yoiir  Ledger  (on  the  credit  side  of  Cash  account)  as  shown  in  the  Model  Ledger.  6.  Check 
in  the  Day  Book-Journal  opposite  the  item  just  posted. 

Trace  the  third  debit.  Expense,  to  the  E.xpense  account  in  the  Model  Ledger.  3.  Post 
to  your  Ledger,  observing  all  the  details  given  in  the  previous  instructions.  3.  Check  in 
the  Day  Book-Journal  opposite  the  word  E.xpense.  Have  you  posted  to  the  debit  side  of 
Expense  account?  4.  Trace  the  credit.  Cash,  to  the  Cash  account  in  the  Model  Ledger. 
5.  Post  to  yo^ir  Ledger,  referring  to  the  entry  as  given  in  the  Model  Ledger.  6.  Check  in 
the  Day  Book-Journal. 

Continue  until  you  have  posted  every  entry  in  the  Day  Book-Journal  to  the  Ledger, 
following  the  instructions  as  given  above.  Proceed  to  make  a  Trial  Balance  as  explained  on 
pages  6  and  7;  after  which  present  your  work  for  approval.  Then  copy  the  Day  Book-Journal, 
post  to  the  Ledger  and  take  a  Trial  Balance,  referring  to  the  script  illustrations,  carefully  fol- 
lowing the  style  of  the  writing  and  figures,  the  arrangement  and  general  appearance  of  same. 
Copy  several  times  more,  or  until  you  can  produce  work  that  is  satisfactory  to  your  teacher. 


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OFFICE    ROUTINE    AND    BOOKKEEPING. 


TRIAL   BALANCE. 


You  will  observe  that  in  the  ilodel  Day  Book-Juurnal  the  debits  aud  credits  are  equal  in 
amount  —  the  total  of  the  Debits  is  equal  to  the  total  of  the  Credits.  This  being  the  case, 
it  is  evident  that  if  no  errors  were  made  in  jiosting,  tlie  Ledger  debits  and  credits  must  also 
be  equal  in  amount.  To  ascertain  whether  the  debit  and  credit  sides  of  the  Ledger  are 
equal,  we  make  a  test  by  taking  a  Trial  Balance.  Trace  the  small  pencil  footings  of  each 
account  in  tlie  Model  Ledger  to  the  Trial  Balance  given  below.  When  there  is  but  one  item 
on  either  side  of  an  account  it  stands  to  reason  that  no  footings  are  required,  as  there  is 
nothing  to  add,  but  do  not  fail  to  enter  such  items  in  the  Trial  Balance.  Pencil  foot  (in 
very  small,  neat  figures)  the  accounts  in  your  Ledger,  and  proceed  to  make  a  Trial  Balance. 
Add  both  sides  of  your  Trial  Balance  to  see  that  tliey  agree,  after  which  submit  your  work 
to  your  teacher  for  approval,  aud  ask  questions  on  any  point  you  do  not  fully  understand. 


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Note. — All  ruling  should  be  clone  in  red  ink  unless  otherwise  instructed  by  the  teacher. 

Instead  of  carrying  the  footings  of  the  Ledger  accounts  to  the  Trial  Balance,  it  is  the 
practice  among  bookkeepers  to  carry  only  the  balances  (differences  between  the  debit  and 
credit  footings)  to  the  Trial  Balance.  The  Trial  Balance  of  the  Model  Ledger,  when  balances 
are  used  instead  of  footings,  will  appear  as  given  on  next  page.  Compare  same  with  your 
Ledger  balances,  and  employ  this  method  when  taking  Trial  Balances  in  your  subsequent 
work. 


OFFICE    ROUTINE    AND    BOOKKEEPING. 
Trial  Balance,  March  15,  189-      (Balance  Method.) 


Vim.  Wood, 

Casli, 

Jlerchandise, 

Expense, 

J.  W.  Winter, 

S.  W.  Snow, 

Jas.  Spring, 

Bills  Receivable, 

Bills  Payable, 


4676 
70 
18 


50 
1600 


6415 


00 


4935 


90 
400 


1000 
6415 


00 


Having  copied  the  preceding  Day  Book-Journal,  posted  the  Ledger  and  taken  the  Trial 
Balance  the  required  number  of  times,  you  will  lay  aside  your  book  and  all  of  your  book- 
keeping work,  except  one  copy  of  your  Day  Book-Journal,  from  which  you  are  to  post  up  a 
Ledger  and  take  a  Trial  Balance  without  referring  to  any  model.  After  this  is  done,  and 
you  have  satisfied  yourself  and  your  teacher  that  you  can  post  readily  and  accurately,  consult 
him  in  regard  to*-proceeding.  Your  writing  should  show  a  marked  degree  of  improvement 
by  the  time  you  have  reached  tliis  point;  if  not,  you  will  have  to  improve  it,  as  good  writing 
is  one  chief  essential  of  good  bookkeeping.  It  would  be  a  waste  of  time  to  proceed  without 
being  able  to  do  creditable  work.  You  should  establish  correct  habits  at  the  very  begin- 
ning. Preserve  the  best  copy  of  your  Model  Ledger  and  Trial  Balance,  as  you  will  need 
them  later. 

Observations. —  Since  the  primary  object  of  business  is  to  acquire  wealth,  it  is  the  custom  of  most 
merchants  "  to  close  "  their  books  once  a  year  to  ascertain  whether  their  business  for  the  year  has  been  pros- 
perous or  not.  To  close  the  model  set  in  a  systematic  manner,  you  would  be  obliged  to  employ  the  pro- 
cesses for  closing  books  as  explained  on  pages  33  to  40  inclusive.  To  acquire  a  thorough  understanding  of 
those  processes,  it  will  be  necessary  for  you  to  first  learn  and  put  into  practice  the  fundamental  principles 
of  making  bookkeeping  records  as  presented  and  explained  on  pages  9  to  28  inclusive. 

While  you  will  not  be  able  to  employ  the  systematic  processes  used  by  the  practical  bookkeeper  in 
determining  whether  Wm.  Wood's  business  has  been  a  prosperous  one  or  not,  you  can,  however,  ascertain 
for  yourself,  by  the  aid  of  the  instructions  given  below,  what  the  condition  of  the  business  is. 

Looking  at  the  first  entry  in  the  Model  Journal  you  find  that  Mr.  Wood  put  into  the  business  $5000  in 
cash.  The  Trial  Balance  shows  the  amount  of  cash  on  hand  at  the  close  of  the  business  period  to  be 
$4676.50,  which  makes  it  appear  that  there  has  been  a  loss.  But  you  are  to  consider  that  there  is  now  $50 
due  the  business  from  Jas.  Spring;  also  M.  Sumner's  note  for  .f  1600.  (See  Trial  Balance.)  You  will  find 
by  referring  to  the  Model  Journal  that  the  goods  purchased  have  not  all  been  sold;  500  bu.  Wheat  have  been 
bought,  while  200  bu.  have  been  sold.  The  remaining  300  bu.,  valued  at  64^  (the  cost  price),  amount  to 
$192.  (See  Model  Journal.)  The  Oats  purchased  remain  unsold,  400  bu.,  valued  at  25}*,  amount  to  $100. 
Of  the  600  bu.  Corn  bought,  500  bu.  have  been  sold ;  the  remaining  100  bu.  at  40ji  amount  to  $40.  Adding 
$4676.50,  the  cash  on  hand;  $50,  amount  due  from  J.  Spring;  $1600,  amount  due  from  M.  Sumner  on  note; 
$192,  value  of  Wheat  unsold;  $100,  value  of  Oats  on  hand;  and  $40,  value  of  Corn  not  sold,  you  have 
$6658.50,  which  would  be  the  present  value  of  Mr.  Wood's  business  were  there  nothing  due  other  parties. 

You  will  find  by  referring  to  the  Trial  Balance  that  there  is  due  J.  W.  Winter  $90,  and  S.  W.  Snow 
$400;  also  a  note  favor  S.  W.  Snow  for  $1000,  making  a  total  of  $1490.  Subtracting  $1490,  the  amount 
due  other  parties,  from  $6658.50  gives  you  $5168.50,  the  present  value  of  the  business. 

Mr.  Wood  started  in  business  with  $5000;  he  withdrew  for  private  use  $75,  thereby  reducing  the  value  of 
his  interest  in  the  business  to  $4925.  Subtracting  $4925  from  $5168.50,  the  present  value,  gives  you  $243.50, 
the  amount  gained. 


8 


OFFICE  routim;  and  bookkeeping. 


SECOND   POSTING   EXERCISE. 
Make  a  neat  copy  of  the  followitig  Journal,  post  same  to  a  Ledger,  placing  four  accounts 
on  a  page;  then  test  the  accuracy  of  your  posting  by  taking  a  Trial  Balance,  using  the  bal- 
ances instead  of  the  footings.      When  completed,  present  to  tlie  teacher  for  approval:  then 
preserve  same  for  future  use.  Sept    16    180- 


Cash, 

Jos.  Winter  commenced  business 

8.")()(» 

Jos.  Winter, 

and  invested, 

8500 

E.xpense, 

Paid  one  month's  rent. 

7.5 

Cash, 

17. 

75 

Mdse., 

Bo'l  for  cash 

850 

Cash, 

200  v<1s.  Broadcloth  at  4.25, 
18. 

850 

Cash, 

Sold  for  cash 

250 

Mdse., 

fjO  yds.  Broadcloth  at  5.00, 
19. 

2.50 

Mdse., 

Bo't  on  account 

765 

11.  .M.  Royal, 

300  yds.  Fancy  Cass,  at  2.55. 
20. 

765 

II.  M.  Roval. 

Paid  on  account. 

500 

Ca.sii, 

500 

.Mdse., 

Bij't  on  account 

G45 

A.  v..  Rudolph, 

150  yds.  Broadcloth  at  4.30, 
21. 
Gave  liiiii  my  note 

645 

A.  G.  Rudolph, 

oOO 

Bills  I'ayable, 

on  account, 
22. 
Sold  on  account 

500 

B.  Hermann, 

440 

Mdse., 

80  yds.  Broadcloth  at  5.50, 

2:5. 

440 

Ca.sh, 

Received  on  account. 

250 

B.  Hermann, 

24 

250 

Jud.  I'" rev, 

Sold  on  account 

525 

Mdse., 

175  yds.  Fancy  Cass,  at  3.00, 
25. 

525 

Bills  Receivul)le, 

Received  his  note 

400 

J  no.  P^rey, 

on  account, 
26. 

400 

Mdse., 

Bought  on  account 

720 

Jafob  Ilauser, 

300  yds.  Blk.  Cass,  at  2.40, 

07 

720 

Jno.  Ilau.ser, 

4  i . 
Sold  on  account 

300 

Mdse., 

100  yds.  Blk.  Cass,  at  3.00. 

28. 

300 

Jno.  Frev, 

Sold  on  account 

240 

Mdse., 

80  yds.  Blk.  Cass,  at  3.00, 
29. 

240 

Jos.  Winter, 

Took  for  private  use 

12 

75 

Mdse., 

3  yds.  Broadcloth  at  4.25,           ' 
30. 

12 

75 

E.xjjense, 

Paid  drayage  bill, 

G 

50 

Cash, 

6 

50 

OFFICE    ROUTINE    AND    BOOKKEEPING.  9 

KEEPING    BOOKS   FOR   C.  W.    HAMMOND. 

You  are  now  to  become  tlie  bookkeeper  for  C.  W.  Ilammoiul,  Wliolesale  and  Retail  dealer 
in  General  Merchandise,  122-124  Main  Street,  City.  Mr.  Hammond,  having  confidence  iu 
your  ability  and  integrity,  gives  you  a  Power  of  Attorney  to  transact  business  and  sign  all 
the  business  papers  requisite  to  carry  on  the  business.  He  will  make  all  purchases  and  sales, 
and  you  are  to  receive  the  goods  purchased,  and  deliver  the  goods  sold;  also,  make  all  records 
in  the  books. 

Being  a  novice  in  business,  you  will  be  subject  to  the  directions  of  those  who  are  able  to 
direct  you.  Do  every  thing  you  are  told  to  do.  Remember  yuu  are  a  learner,  not  a  business 
man.  Business  can  not  be  done  in  the  school  room,  and  is  represented  only  to  teach  busi- 
ness routine  and  make  bookkeejiing  more  practical  than  it  is  jiossihle  without  tiie  vouchers 
(business  papers)  and  the  representatives  of  the  commodities  in  which  you  are  dealing. 

You  will  practically  get  the  same  experience  you  would  get  were  you  engaged  in  a  real 
business,  and  will  be  confronted  with  the  same  problems  that  confront  the  bookkeeper  in  a 
business  house.  Bills  of  the  goods  bought  and  other  business  papers  will  be  handed  to  you 
by  the  teacher,  just  as  the  letter  carrier  delivers  the  mail  to  the  bookkeejier  or  manager  in 
an  office.  These  papers  are  similar  in  every  respect  to  those  used  in  business.  All  business 
papers  issued  are  to  be  written  up  by  you,  and  the  records  made  in  the  books  just  as  this 
work  is  done  by  the  bookkeeper  in  business. 

The  work  in  your  books  will  not  be  like  any  other  student's  work.  The  capital  invested 
will  be  different  in  amount.  Your  selling  list  will  be  assigned  to  you  by  your  teacher,  and 
you  must  adhere  strictly  to  it  if  you  desire  to  get  correct  results.  No  advantage  is  to  be 
derived  from  comparing  your  work  with  that  of  other  students,  as  of  necessity  the  work  is 
different.     Be  self-reliant  and  you  will  succeed. 

Before  making  an  entry  in  your  books,  it  will  be  necessary  for  you  to  determine  the  debit 
and  credit  to  which  the  transaction  gives  rise.  This  you  will  do  by  applying  the  Special 
Rules  for  the  accounts  to  be  debited  and  credited,  to  which  you  will  be  referred  by  number. 
After  you  have  made  the  entry,  your  next  step  will  be  to  learn  the  reason  for  debiting  and  cred- 
iting as  you  did,  which  may  be  done  by  studying  the  General  Rules  for  debiting  and  crediting. 

Carefully  study  the  following  accounts  and  answer  the  questions. 

Cash.     Under  this  title  everything  considered  money  is  to  be  entered;  as  Specie,  Bank 
Bills,  Checks,  Bank  Drafts,  Postal,  Express,  and  Telegraph  Money  Orders,  etc. 
The  Special  Rules  for  debiting  and  crediting  Cash  are  as  follows: 

3.    Debit  Cash  jvlien  it  is  received  hij  the     4.     Credit  Cash  when  it  is  parted  with  by 
business.  the  business. 

The  difference  between  the  sides  of  the  Cash  account  will  show  the  the  cash  on  hand. 
The  credit  side  of  this  account  can  not  be  greater  than  the  debit  side,  since  it  is  impossible 
to  pay  out  more  than  has  been  received.  Cash  on  hand  is  a  Resource.  An  account  exhibits 
a  Resource  when  it  represents  property  on  hand,  or  an  amount  owing  to  the  business. 

TRANSACTIONS   ILLUSTRATING  THE  CASH   ACCOUNT. 

March  1.  Received  cash  of  the  Proprietor,  1500.  March  2.  Paid  cash  for  rent,  $20. 
March  3.  Received  cash  for  merchandise,  $140.  March  4.  Paid  Jas.  Harris  cash  on  account, 
$50.     March  5.    Received  cash  of  John  West  on  account,  $80. 


10 


OFFICE    ROUTINE   AND    BOOKKEEPING. 


y^iiT.'^^^ 


/(^Ifl.'C^tS!,^ 


ui::^ 


7^.t? 


^. 


^ 


yi9^£:tyC^t:i--'?-Zy-C.-e..^ 


♦Write  the  above  line  in  red  ink  unless  otherwise  instructed  by  the  teacher.  It  has  been  a  prevailing 
custom  to  balance  accounts  in  red  iiili  and  to  bring  the  balances  below  tlie  ruling  in  black  ink.  Tliere  are 
many  good  bookkeepers,  however,  who  use  but  one  color  of  ink  oa  their  books.  The  tendency  at  the 
present  time  seems  to  be  toward  one  color.  You  are  to  use  red  ink  in  all  your  work  wherever  directed  to 
do  80,  unless  you  receive  instructions  to  the  contrary  from  your  teacher. 

The  above  illustration  shows  that  Cash  account  has  received  $720  and  parted  with  %10, 
leaving  a  balance  of  §G50,  which  is  a  Resource.  The  balance  as  shown  by  the  Cash  account 
should  agree  with  the  actual  amount  on  hand. 

Questions. — Wliat  i.<  to  be  entered  in  the  Cash  account?  What  is  considered  money? 
When  is  cash  debited?  When  credited?  What  docs  the  difference  between  the  two  sides 
of  the  Cash  account  show?  Is  cash  on  hand  a  resource  or  a  liability?  Which  side  of  Cash 
account  must  be  the  greater,  when  tliere  is  any  difTerence?     Why? 

Tlui  Proprietor's  Account.  The  person  engaging  in  business  has  an  account  opened 
under  his  own  name,  in  which  are  to  be  entered  the  sum  or  sums  by  him  invested  or  with- 
drawn, and,  at  stated  periods,  the  net  gain  or  net  loss  resulting  from  the  prosecution  of 
the  business.  The  title  Stock  was  formerly  used  instead  of  the  ])roprietor's  name.  When 
several  persons  are  engaged  in  a  business  they  are  known  as  partners,  and  each  partner  is 
credited  for  his  investment  and  debited  for  all  withdrawals. 

The  Special  Rules  for  debiting  and  crediting  the  Proprietor's  account  are  as  follows: 


Dkbit  the  Projwictor  for  his  liabilities 

assumed  by  the  bttsincss. 
Debit  the  Proprietor  for  amotmts  drawn 

from  the  business  for  his  private  use. 
Debit  the  Proprietor  for  the  Net  Loss. 


8.  Credit  the  Proprietor  for  his  invest- 

ment  at  commenci»g  business. 

9.  Credit  the  Proprietor  for  subsequent 

investments. 
10.     Credit  the  Proprietor  for  tlie  Net  Gain. 


The  difference  between  the  sides  of  the  Proprietor's  account  at  commencing  business  is 
called  the  Net  Investment.  The  difTerence  in  the  account  at  the  close  of  business,  after  the 
Net  Gain  or  Xet  Loss  has  been  transferred  to  it,  is  called  the  Net  Capital  or  Present  Capital. 


TRANSACTIONS  ILLUSTRATING   THE   PROPRIETOR'S  ACCOUNT. 

James  Munsey,  Proprietor.  June  1.  Invested:  Cash,  $5,000;  Merchandise  per  Inven- 
tory, *3450;  H.  J.  West's  note,  *500.  His  Liabilities  are:  Note  favor  of  E.  W.  Martin, 
%I000,  with  interest  accrued,  $00.  June  15.  Withdrew  for  private  use,  $75.  June  30:  On 
closing  books  the  Net  Gain  is  found  to  be  $632. 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


11 


'L-^^i-^^ 


^^. 


^  I?  a 


V*-  -J-  •'Ci 


,/ 


Ja 


^^^^--^'Z-^ 


y  .y  ^  c 


J^.l-^-' 


z'^^/ 


*To  be  written  in  red  ink. 


The  above  account  shows  that  the  total  investments  are  17950,  and  the  total  liabilities 
are  S1060,  making  a  Net  Investment  or  Capital  of  $0890.  This  Capital  is  diminished  by  the 
withdrawal  of  $75,  and  increased  by  the  Net  Gain  of  $633,  making  the  Present  Capital  $7447. 

Questions.  For  what  is  the  Proprietor  credited?  For  what  is  he  debited?  What  is 
the  difference  between  the  sides  of  the  Proprietor's  account  at  commencing  business  called? 
What  is  the  difference  called  after  the  Net  Gain  or  Net  Loss  has  been  entered  in  the  account? 
What  title  is  sometimes  used  instead  of  the  Proprietor's  name?     Wliat  is  a  partnership? 


Explanations  in  Ledger  Accounts.  Formerly  it  was  the  custom  of  bookkeepers  to 
write  tlie  name  of  the  credit  account  of  an  entry  in  the  explanation  column  of  the  debit 
account  of  the  same  entry.  Likewise  in  the  explanation  column  of  the  credit  account  of  an 
entry,  the  name  of  the  debit  account  was  written.  As  the  writing  of  the  names  of  opposite 
accounts  in  tlie  explanation  columns  of  ledger  accounts  conveys  no  practical  information, 
and  only  creates  unnecessary  labor,  it  has  been  discontinued  by  progressive  bookkeepers. 

Other  information  of  a  more  practical  character  may  be,  and  often  is,  written  in  the 
ledger  accounts;  such  as  tlie  terms  on  which  a  bill  of  goods  was  purchased  or  sold,  the 
amount  of  discount  received  from  or  allowed  to  a  person,  and  the  initials  of  the  books  from 
which  postings  are  made  wlien  there  is  more  than  one  book  of  original  entry,  so  that  refer- 
ence to  the  original  entry  can  be  made  with  ease  and  certainty,  etc.  The  original  part  of  a 
closing  entry  sliould  be  written  in  red  ink  to  distinguish  it  from  those  items  that  are  trans- 
ferred from  other  books  or  accounts,  and  should  have  the  name  of  the  account  to  wliich  it 
is  transferred  written  in  the  explanation  column.  The  record  in  tlie  account  to  wliich  it  is 
transferred  should  be  made  in  black  ink,  and  should  include  .the  name  of  tlie  account  which 
contains  the  original  part  of  the  entry. 

In  posting  from  the  books  of  original  entry  the  student  will  observe  the  instructions 
given,  unless  otherwise  directed  by  the  teacher. 

Note. — In  law  the  book  containing  the  original  entry  is  the  Day  Book,  whether  such  book  is  the  Day 
Book,  so  called,  or  the  Day  Book-Journal,  Sales  Book,  Cash  Book,  or  any  other  book  or  record.  Such 
books  of  original  entry  become  the  basis  for  all  explanations,  and  are  the  only  business  records  admitted  as 
evidence  in  court.  Such  records  to  possess  value  as  evidence  must  be  clear  and  complete  and  free  from 
eramires.  A  material  alteration  in  an  entry  in  a  book  of  original  entry  taints  the  record,  and  sometimes 
makes  it  worthless.  When  a  mistake  is  made  in  a  book  of  original  entry  it  should  be  corrected  in  such  a 
manner  as  will  make  the  fact  that  it  was  a  mistake  apparent;  in  other  words,  the  evidence  of  the  mistake 
should  be  preserved.     Erasing  should  never  be  resorted  to  in  a  book  of  original  entry. 


12 


office  routine  and  bookkeeping. 
Selling  Price  Lists. 


Apples  per  bbl. . 
Barley  per  bu. . 

Beans  per  bu 

Butter  per  lb 

Clover-s'dperbu. 
Corn  per  bu.  . . 

Coffee  per  lb 

Eggs  per  doz 

Flaxseed  jier  bu 
Flour  per  bbl.  . . 
Hams  per  lb. ... 

Lard  per  lb 

Molasses  per  gal, 

Oats  per  bu 

Peas  jier  bu 

Potatoes  per  bu. 

Rye  per  bu 

Sugar  per  lb 

Tea  per  lb 

Wheat  ))or  bu. . . 


1.80 

38 

1.75 

•u 

4.02 
.34 

14 

1.81 
4.50 
18 
12f 
49i 
40 
1.41 
41 
41 
10| 
27 
09 


1.76 
48 

1.52 
22i 

4.14 
31 
2^ 

1.69 

4.74 
17 

1-H 

48 
49 
1.64 
45 
31 
05} 
28i 


1.81 
39 

L59 
25 

4.18 
36 
18} 

1.65 

4.72 

16 

llf 
47 
44 
1.57 
40 
40 

lli 
291 


1.77 
50 

1.62 
26- 

4.32 
38 
19 
16f 

1.51 

4.61 
17^ 
10 
45^ 
42 

1.54 
44 
29 
KU 
31 
88 


1.82 

40 

1.74 

m 

4.38 
32 
20} 

1.45 
4.52 
16 
14 
37i 
48 
1.42 
39 
39 
09} 
39 
97 


6 


1.78 
28 

1.51 
28 

4.04 
41 

19* 
18| 

1.79 

4.71 
15^ 
081 
38i 
39 

1.65 
43 
51 
10 
38 


1.83 
37 

1.61 
27i 

4.40 
45 
21 
19 

L43 

4.69 

15i 
09i 
41 
35 
1.55 
38 
42 
081 
35i 
80 


1.79 
20 

1.58 
25^ 

4.30 
48 
20^ 

L53 

4.53 

14 

IH 
43A 
32 
1.58 
42 
49 
09 
33 
96 


9 


.84 
42 
.64 
26 
.12 
53 
22 
20i 
.71 
.65 
13| 
lOf 
45 
27 
,52 
37 
37 
07^ 
3U 
84 


10 


1.90 
29 

1.73 
23 

4.26 
33 

m 

m 

L57 
4.57 
15| 
13| 
48J 
47 
1.43 
31 
50 
11 
28 
92 


11 

12 

1.97 

1.91 

43 

31 

1.53 

1.65 

25| 

29i 

4.06 

4.28 

51 

35 

21J 

22^ 

17 

19^ 

L77 

1.55 

4.67 

4.59 

m 

14f 

11 

m 

42i 

38 

29 

45 

1.63 

1.51 

24 

30 

36 

48 

07| 

07 

34 

3Si 

82 

90 

13 


1.86- 

44 
1.56 

26i 
4.34 

50 

23 

21 
1.49 
4.55 

39J 
30 
1.60 
35 
35 
06| 
37 
94 


Amounts  to  be  Invested. 


1 

8100 

2 

3 

4    5 

6 

7 

8 

9 

10 

11 

13 

13 

7300 

9500 

7500 

7100 

8200  7600 

8000 

88()0 

7400 

8900 

8300 

7200 

.C    W.    HAMMOND'S    BUSINESS. 

To  tlio  Stii«l(Mil.  I?ear  in  mind  that  you  are  about  to  keep  the  books  of  the  "  business"  of 
wliich  Mr.  llunuiiond  is  the  Projjrietor,  and  not  merely  the  accounts  of  Mr.  Hammond.  The 
busineits  receives  and  parts  with  (supplies)  value,  and,  so  far  as  tlie  books  are  concerned,  Mr. 
Ilaniiiiond  is  merely  one  of  the  ))ersons  with  whom  the  business  has  dealings.  As  you  have 
learned,  an  account  is  kept  with  him,  and  he  is  credited  with  the  capital  he  invests  (value  sup- 
)>lied  to  the  business)  and  is  charged  (debited)  for  what  he  receives  from  the  business. 


OFFICE    ROUTINE    AND    BOOKKEEPING. 
Selling  Price  Lists  (Continued). 


13 


Apijk'S  per  bbl. -- 

Barley  jier  bu 

Beans  per  bu 

Butter  })er  lb 

Clover-seed  per  bu 

Corn  per  bu. 

Coffee  per  lb 

Eggs  per  doz 

Flaxseed  per  bu.. 
Flour  per  bbl.  - . . 

Hams  per  lb 

Lard  per  lb 

Molasses  per  gal. . 

Oats  per  bu 

Peas  per  bu 

Potatoes  per  bu. . 

Rye  per  bu 

Sugar  per  lb 

Tea  per  lb 

Wheat  per  bu 


14 


1.92 

32 
1.63 

27 
4.08 

43 

20 

19f 
1.75 
4.64 

09^ 
42 
37 
1.53 
29 
47 

on 

3U 

85 


15 


.87 
46 

.72 

m 

.22 
52 
23i 
20| 

.61 

.60 
13f 
06-1 
46f 
28 

.44 
34 
33 
06 
30 
89 


IG 


1.93 

33 

1.54 

4.48 
40 
211 
16* 

1.35 

4.58 
171 
13i 
4^4 
40 

1.62 
28 
46 
08 
32i 
91 


17 


1. 


4. 


88 

45 
.67 

29| 

16 

55 

23| 

17| 
.67 
.63 

16| 

07 

25 
.49 
33 
34 
05| 
35 
86 


18 


1.94 
34 

1.60 
28-^ 

4.46 
47 
20f 
20 

1..37 

4.70 

1-ii 
081 

40 

33 

1.56 

27 
45 
08| 
36i 

79 


19 


1.89 
47 

1.68 
30 

4.44 
54 
22| 
18| 

1.39 

4.56 
15| 
06| 
46 
26 

1.48 
32 
32 
06| 
30i 
93 


20 

21 

22 

1.95 

2.00 

1.96 

35 

26 

36 

1.71 

1.55 

1.69 

27| 

29 

28f 

4.36 

4.50 

4.20 

46 

49 

44 

2^ 

22i 

21i 

20f 

19f 

17, 

1.47 

1.33 

1.63 

4.66 

4.62 

4.68 

13| 

14| 

m 

09 

071 

08 

44i 

43 

m 

34 

31 

36 

1.45 

1.61 

1.47 

26 

21 

25 

44 

53 

43 

06J 

07i 

08i 

32 

33i 

36 

83 

87 

81 

23 


1.99 

49 
1.66 

24f 
4.24 

39 

19| 

1.59 

4.54 

15 

12 
39 
41 
1.50 
')•) 

30 
09f 
37i 
95 


24 


1.85 

41 

1.57 

m 

4.42 
42 
24 
18 

1.41 

4.73 
16i 
13* 
47i 
38 

1.59 
36 
38 
05i 
29 
76 


25 


1.98 
27 

1.70 
23f 

4.10 
37 
19i 
16| 

1.73 

4.51 

13 
49 
43 
1.46 
23 
52 
lOi 
27t 
98 


Amounts  to  j 

BE  Invested  (Continued). 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24   25 

7900 

8600 

9200 

7700 

8500 

9400 

8700 

7800 

9100 

9300 

9000 

8400 

Having  carefully  studied  pages  9, 10  and  11,  consult  your  teaclier  in  regard  to  proceeding,  and 
answer  all  questions  he  may  ask  you.  If  you  answer  his  questions  satisfactorily,  he  will  hand 
you  the  cash  Mr.  Hammond  is  to  invest  in  the  business,  your  Power  of  Attorney,  and  tlie  recep- 
tacles for  your  business  papers  and  merchandise,  also,  assign  you  the  price  list  you  are  to  use. 
Count  the  cash  and  place  it  in  the  Cash  Drawer.    File  the  Power  of  Attorney  on  the  Voucher  File. 

Note. — After  having  been  assigned  by  the  teacher  the  price  list  to  be  used,  the  pupil  is  advised  to  copy  it  on 
a  separate  sheet  of  paper.  This  will  put  the  list  in  a  form  convenient  for  use,  and  render  mistakes  less  liable  to 
occur  in  making  the  extensions. 


14 


OFFICE    ROUTINK    ANU    bUOKKEliPING. 


Jakuaky   1,  189-. 

No.  1. — Entry  for  the  Investment.  Determine  the  account  to  be  debited  by  reading 
rule  S,  page  9.  Determine  the  account  to  be  credited  by  reading  rule  S.  page  10.  Make 
tlie  entry  as  follows  on  a  sheet  of  journal  l>a]ier,  writing;  the  current  year  on  the  head  line  and 
placing  the  amount  of  cash  received,  instead  of  $iOOO,  in  the  money  columns. 


(lSf:%^. 


^::Z^-7^Z^  ' 


J 


^- 


.U^ 


II 


(This  entry  is  similar  to  the  first  entry  in  the  Model  Journal.) 

Give  tiie  reason  montally  for  the  above  debit.  {Read  rule  1,  page  1.)  Give  the  reason 
mentally  for  the  above  credit.  {Read  rule  2,  jiage  1.)  Give  your  reasons  similar  to  the 
following:  '"Casli  account  is  debited  because  it  has  received  value  from  the  business,  and  is, 
therefore,  indebted  to  it.  Jlr.  Hammond  is  credited  because  he  has  supplied  the  value,  and, 
therefore,  the  business  is  indebted  to  him."  Be  sure  to  give  the  reason  every  time  you  are 
instructed  to  do  so. 

Carefully  study  the  following  account  and  be  prepared  to  answer  the  questions. 

Morchaiulise.  This  title  is  usually  applied  to  all  goods  the  proprietor  is  dealing  in  as 
a  business.  If  it  is  desired  to  show  results  in  detail,  separate  accounts  should  be  opened; 
as  Flour,  Corn,  Wheat,  etc.,  instead  of  including  all  under  the  general  heading,  Merchandise. 

The  Special  Eules  for  debiting  and  crediting  Merchandise  are: 


11.     Debit     Merchandise     wheti 
{bought)  by  the  business. 


received  li.  Crkdit  Merchandise  when  parted  with 
{sold  or  supplied  to  others)  by  the 
business. 


Since  the  debit  side  of  Merchandise  shows  what  the  goods  cost,  and  the  credit  side  what 
they  sell  for,  the  difference  must  show  the  Gain  or  Loss  —  providing  the  goods  have  all  been 
sold.  When  some  of  the  goods  remain  unsold,  deduct  their  current  vilue  from  the  debit 
side  —  or  add  it  to  the  credit  side  —  and  the  difference  between  the  sides,  after  this  has  been 
done,  will  show  the  gain  or  loss.  If  the  credit  side  of  the  account  is  the  larger,  the  differ- 
ence shows  a  gain;  if  the  debit  side  is  the  larger,  the  difference  shows  a  loss.  Property 
remaining  on  hand  is  called  an  Inventory. 


TRANSACTIONS   ILLUSTRATING    MERCHANDISE  ACCOUNT. 

May  1.  Bought  goods  of  L.  Warwick  for  Cash,  1200.  jMay  2.  Bought  goods  of  Wni. 
Macy  on  account,  $."3.50.  May  3.  Sold  Jolin  Kress  merchandise  for  Cash,  $150.  ilay  4. 
Value  of  the  goods  on  hand  (Inventory),  1-150. 

Note. — In  every  computation  if  there  is  a  fraction  of  one-half  cent  or  more  in  tlie  result,  add  another 
cent;  if  less  limn  one-half  cent.  (Imp  tlie  fraction. 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


16 


-C 

'A 

* 

^5 

• 

^  ^r^- 

---'w*^..-"' 

<^  <?  i> 

w    i7    c? 

-^T- 

'4 

--o-^ 

*To  be  written  in  red  ink. 

The  above  account  shows  that  goods  amounting  to  $550  have  been  purchased,  and  goods 
amounting  to  $150  have  been  sold.  Since  the  cost  is  in  excess  of  the  sales,  it  is  evident  that 
there  would  be  a  loss  of  |;400  were  there  no  goods  on  hand.  Subtracting  the  excess  of  cost 
($400)  over  sales  from  the  inventory,  wo  have  a  gain  of  $50.     Why? 

Questions.  To  what  is  the  title  ]\Ierchandise  applied?  Why  are  separate  accounts 
sometimes  opened  with  the  different  articles,  instead  of  including  them  all  under  the  general 
heading,  Merchandise?  For  what  is  Mdse.  debited?  For  what  credited?.  What  does  the 
difference  between  the  debit  and  credit  sides  show?  When  a  portion  of  the  goods  remain 
unsold,  what  must  be  done  to  find  the  gain  or  loss?  What  is  property  remaining  unsold 
called?  When  the  credit  side  of  Mdse.  is  larger  than  the  debit,  does  the  difference  sliow  a 
Gain  or  a  Loss? 

No.  2. —  Cash  Purchase.  Mr.  Hammond  has  bargained  with  your  teacher  for  300  bu. 
Wheat,  at  00^'  per  bu.,  and  200  bbls.  Flour,  at  $4.10  per  bbl.  He  wishes  you  to  pay  for 
same,  receive  the  Mdse.  and  a  receipted  bill.  Make  the  calculations  to  find  the  cost,  then 
hand  the  required  amount  of  cash  to  your  teacher,  and  get  the  bill  and  the  representative 
Mdse.  Check  the  items  of  the  bill  (using  pen  and  ink  and  placing  the  check  marks  in  the 
vertical  column  to  the  left  of  the  items)  with  the  Mdse.  to  see  that  what  is  called  for  is 
received.  Go  over  the  calculations  and  the  addition  of  the  bill  to  see  that  no  errors  exist, 
placing  a  check  mark  to  the  right  of  every  extension  found  to  be  correct.  If  found  correct, 
write  "  0.  K."  with  your  initials  underneath  in  the  lower  left-hand  corner.  Place  the  Mdse. 
in  the  "Store  Room."  Determine  the  account  to  be  debited  by  reading  r««^e  11,  page  I4. 
Determine  the  account  to  be  credited  by  reading  rule  i,  page  9.  Make  the  entry  as  follows, 
substitutinff  the  correct  amounts  for  tlic  amounts  jriven. 


Give  the  reason  mentally  for  the  above  debit.  {Read  rule  1,  page  1.)  Give  the  reason 
mentally  for  the  above  credit.  {Read  rule  2,  page  1.)  Fold  your  bill  lengthwise,  face  out- 
ward, and  write  across  the  face  "Entered,"  placing  the  date  underneatli.  Place  it  on  the 
Voucher  File. 


u; 


OFFICK    KOUTIN'K    AM)    «OUKKF,EI'ING. 


No.  3.— MEKCUANinsK  Pluuiiaski)  Foii  Cash.  ,Mr.  Iluminond  has  given  your  teaclier 
an  order  for  1300  bu.  Corn,  at  30'/  per  bu.,  and  100  bbls.  Flour,  at  $4.10  jjer  bbl. 
Take  tlie  necessary  cash,  ])ay  for  it,  and  get  tlie  representative  merchandise  and  receipted 
bill  for  same.  Check  the  bill  with  the  merchandise.  Verify  the  calculations  and  addi- 
tion  of  the  bill,  and  if  found  correct,  0.  K.  it  as  previously  instructed.  Place  the  mer- 
chandise in  the  Store  Room.  \)Qh\t  — Rule  11,  page  U.  Ci-oAii  — Rule  4,  paqe  9.  Make  the 
entry  underneath  the  entry  for  the  second  transaction.  With  the  exception  of  the  amounts, 
tiiis  entry  is  identical  with  No.  2,  therefore  no  model  is  given.  Give  the  reason  mentally  for 
the  debit  (rule  1);  also  for  the  credit  {rule  2).  Fold  the  bill  lengthwise,  face  outward,"  and 
write  across  the  face  "  Entered,"  placing  the  date  underneath.     File  the  bill  properly. 

Follow  all  directioms  in  the  exact  order  in  which  they  are  given. 

No.  4. — Cash  Sale.  Your  teacher  has  received  an  order  for  Flour  and  Wheat  from  an 
out  of  town  customer.  Not  having  cither  in  stock,  he  has  arranged  with  Jlr.  Hammond  to 
purchase  from  him  50  bbls.  Flour  and  100  bu.  Wheat  at  the  ])rices  given  in  your  selling  price 
list.  Select  the  goods  from  the  stock  in  the  Store  Room.  Make  out  the  bill  on  one  of  Mr. 
Hammond's  bill  heads,  using  one  of  the  bills  on  your  Voucher  File  as  a  model.  Always  go 
over  your  calculations  and  addition  a  second  time  to  make  certain  that  your  work  is  correct. 
Receipt  the  bill  as  follows: 

"Received  Payment, 

C.  W.  Hammond, 

per  {your  name)." 

Hand  the  bill  and  the  goods  to  your  teacher.  If  he  approves  your  work  he  will  jiay  you;  if 
not,  you  will  have  to  rewrite  the  bill.  When  he  has  paid  you,  determine  the  account  to  be 
debited  by  reading  rule  S,  page  9.  Also  the  account  to  be  credited  by  reading  rule  12,  page 
U.  Make  the  entry  as  follows,  substituting  the  correct  extensions  and  amounts  for  the 
ones  given: 


C^^^ 

^.^U^ 


.^.^^ 


Give  the  reason  mentally  for  the  debit  —  Rule  1 ;  credit  —  Rule  2.  Place  the  cash  in  the 
Cash  Drawer,  recounting  it  before  doing  so.  Always  count  cash  a  second  time,  both  in 
receiving  and  i)aying  it  out. 

Follow  the  instructions  of  your  teacher  and  those  given  herewith  to  the  letter.  All 
business  papers  or  vouchers  and  merchandise  representing  the  business  transacted  by  Mr. 
Hammond  will  come  to  yon  through  your  teacher.  Apply  for  the  first  lot.  Take  up  each 
transaction  in  the  order  it  is  given. 

No.  5. — Mehchandise  Bought  for  Cash.  The  first  bill  (No.  5)  represents  a  cash 
purchase  which  Mr.  Hammond  has  made.  Take  the  merchandise  (No.  5)  and  check  up  the 
bill.  Verify  the  calculations  and  addition,  and  if  found  correct,  0.  K.  it  as  you  did  No.  2. 
Store  the  merchandise.  Mr.  Hammond's  0.  K.  indicates  that  the  prices  are  the  ones  agreed 
on  when  he  made  the  purchase,  but  it  does  not  signify  that  the  calculations  and  addition 
arc  correct.     That  is  left  for  you  to  ascertain.     Never  entei  a  bill  that  has  not  had  the  prices 


OFFICE    ROUTINE    AND    HOOKKEEI'ING. 


17 


0.  K.'d  by  the  buyer.  Pay  tlie  bill,  placing  the  cash  in  the  Cash  Paid  Out  receptacle. 
In  paying  parties  other  than  your  teacher,  always  jilace  the  cash  in  this  receptacle,  from 
which  it  will  be  delivered  to  your  teacher,  who  represents  those  parties.  Debit — Rule  11, 
page  H.     Credit  —  Rule  i,  page  9.     This  entry  is  similar  to  entry  for  No.  2. 

Note. —  The  student  is  requested  to  write  his  address  where  indicated  and  complete  the  date  on  each 
and  every  voucher  received. 

Give  the  reason  mentally  for  the  debit  —  Rule  1 ;  credit  —  Rule  2.  File  the  bill,  following 
instructions  given  for  No.  3.  Do  not  proceed  with  the  next  transaction  until  you  thoroughly 
understand  this  one. 

Study  the  following  account  and  be  prepared  to  answer  the  questions. 

Expense  Account.  Under  tiiis  title  are  to  be  entered  all  amounts  expended  for  caiTying 
on  the  business;  as  rent,  oiSce  books  and  office  furniture,  clerks'  salaries,  postage,  etc.  If 
it  is  desired  to  show  results  in  detail,  separate  accounts  must  be  kept  with  Salaries,  Rent, 
Office  Furniture,  etc.,  instead  of  including  them  all  under  the  general  heading,  Expense. 
When  separate  accounts  are  kept,  apply  the  rules  for  Expense  account,  as  they  are  subdi- 
visions of  this  account. 

The  Special  Rules  for  debiting  and  crediting  Expense  account  are: 

13.     Debit  Expense  ivTien  it  costs  the  bust-     14.     Credit  Expense  zohen  it  supplies  value 
ness  value,  from  anything  previously  debited  to 

Expense. 

TRANSACTIONS  ILLUSTRATING   EXPENSE  ACCOUNT. 

Oct.  1.  Paid  rent,  %VZ.  Oct.  2.  Bought  two  tons  coal,  $9.50.  Oct.  3.  Bought  postage 
stamps,  $5.     Oct.  7.    On  selling  out  the  business,  sold  the  coal  on  hand  for  16. 


a^ 


-1  ^ 


£g= 


a^ 


7 


S^ 


t^T:i^^£^ 


-'-'^ 


*To  be  written  in  red  ink. 

This  account  shows  the  expenditures  (value  received  by  Expense)  for  carrying  on  the 
husiness  to  be  $26.50,  and  the  amount  "  supplied  "  by  selling  the  coal  to  be  86.  Deducting 
the  credit  amount  from  the  debit  gives  $20.50,  the  loss.  Expense  account  generally  shows 
a  loss. 

Questions.  What  is  to  be  entered  under  the  title  Expense?  What  must  be  done  if  it 
is  desired  to  exhibit  results  in  detail?  For  what  is  Expense  debited?  For  what  credited? 
What  does  Expense  account  generally  show? 


18 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


Jaxuaky  2,  189-. 

No.  6. — Cash  Paid  for  Stationery  and  Books.  Bill  No.  6  is  for  stationery  and 
books,  which  were  received  yesterday.  It  has  been  checked  and  0.  K.'d  by  Mr.  Hammond, 
which  shows  that  all  the  items  were  received  by  him  and  tlie  prices  are  correct.  Examine 
the  bill  to  see  that  no  errors  exist.  Pay  the  bill,  jilaciug  the  cash  in  Cash  Paid  Out.  Deter- 
mine the  account  to  be  debited  by  reading  rule  IS,  page  17.  Determine  the  account  to  be 
credited  by  reading  rule  ^,  page  9.  Substituting  the  projier  amounts,  make  the  following 
entry: 


C^-if^-e^-^C- 


Give  the  reason  mentally  for  the  debit  —  Eule  1 ;  credit  —  Rtde  2.  File  the  bill  as  pre- 
viously instructed.     Consult  your  teacher  about  anything  that  you  do  not  fully  understand. 

No.  7. — Rent  Paid  in  Cash.  According  to  the  terms  of  his  lease,  Mr.  Hammond  is 
to  ])ay  $100  i)er  month  for  rent  of  store  at  122-124  Main  Street.  Pay  tlie  rent  for  the  month 
of  January,  placing  the  cash  in  Cash  Paid  Out,  and  take  a  receipt  (No.  7)  for  same.  Debit — 
Rule  IS,  page  17.  Credit  —  Rule  Jt,  j)age  9.  This  entry  is  similar  to  the  entry  for  No.  6, 
with  the  exception  of  the  explanation  (Day  Book  entry),  which  is  as  follows:  "Paid  Janu- 
ary rent."  Give  the  reason  mentally  for  the  debit  —  Rule  1 ;  credit  —  Rule  3.  Place  the 
receipt  on  the  Voucher  File.     Are  you  doing  everything  in  the  exact  order  indicated? 

J  ANITA  KY  3,    189-. 

No.  8. — Merchandisk  Sold  i'ok  Cash.  ^Ir.  1  lam niond  has  sold  your  teacher  the  fol- 
lowing: 1000  liu.  Oats,  1000  bu.  ("orn,  for  cash  at  the  jjriees  given  in  your  selling  price  list. 
Follow  instructions  for  No.  4  and  make  out  the  bill,  after  wiiieh  deliver  the  goods  and  bill 
to  your  teacher,  receiving  the  cash  for  same.  Debit — RuU  S,  page  9  j  credit — Rule  12,  page 
IJh  Explanation  excepted,  this  entry  is  similar  to  No.  4.  Give  the  reason  mentallv  for  the 
debit  {Rule  1)  and  credit  [Ihde  2.)     Recount  the  cash  and  place  it  in  the  Cash  Drawer. 

Study  the  following  and  be  prepared  to  answer  the  questions. 

Personal  Accounts.  If  a  jjcrson  buys  goods  from  us,  to  be  paid  for  at  a  future  time, 
he  receives  value  from  the  business.  At  the  time  he  pays  for  them  he  supplies  value  to  the 
business.  If  we  buy  of  a  jierson,  in  like  manner  he  sujjplies  the  business  with  value.  At 
the  time  we  pay  him,  be  receives  value  from  the  business. 

For  personal  accounts  we  have  the  following  Special  Rules: 

16.     Debit  a  person  wJien  he  receives  value     16.     Credit  a  peison  when  he  supplies  value 
from  the  business  on  account  to  the  business  on  account. 

When  a  person  buys  goods,  without  paying  for  them  at  the  time  of  purchase,  the  trans- 
action is  said  to  be  on  account  (on  credit).  If  the  debit  side  of  a  personal  account  is  larger 
than  the  credit,  he  owes  us  the  diflercnce,  and  this  difference  is  a  Rciource.  If  the  credit 
side  of  a  personal  account  is  larger  than  the  debit,  we  owe  him  the  difference,  and  this  differ- 
ence is  a  Liability.  An  account  exhibits  a  Liability  if  it  rejiresents  an  amount  owing  by 
the  business.     Accounts  with  tirms  and  corporations  are  considered  Personal  accounts. 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


19 


TRANSACTIONS   ILLUSTRATING  A   PERSONAL  ACCOUNT. 

Decalings  with  Edward  F.  Becker.     Aug.  1.  Sold  him  merchandise  on  account,  $65. 

Aug.  2.    Received  casli  of  him  on  account,  $25.  Aug.  3.    Received  liis  note  at  GO  days  for 
$40.     Aug.  4.    Loaned  liim  $.30. 


The  debit  side  of  this  account  sliows  tluit  Edward  F.  Becker  has  received  vaUie  amounting 
to  $95  from  our  business,  and  the  credit  side  shows  tliat  vahie  amounting  to  $05  has  been 
supplied  to  our  business  by  him,  leaving  a  balance  of  $30,  which  is  a  resource  to  the  busi- 
ness. Why?  Never  rule  a  personal  account  unless  it  balances.  See  above  illustration.  In 
many  business  houses  personal  accounts  are  never  ruled. 

When  personal  accounts  are  not  ruled,  it  is  a  good  plan  to  check  the  payments  when 
such  payments  equal  one  or  more  items  on  the  opposite  side.  This  is  done  by  placing  neat 
check  marks  (y')  at  the  time  of  posting  on  the  double  vertical  rulings  directly  to  the  left  of 
both  the  debit  and  credit  items  that  are  equal  to  each  other,  as  illustrated  above. 

Note. — In  the  above  illustration  the  items  tliat  balance  are  both  ruled  and  checked.  You  are  to  either 
check  or  rule  the  items  that  balance,  as  your  teacher  may  direct.     Do  not  fail  to  consult  your  teacher. 

TRANSACTIONS    ILLUSTRATING    A    PERSONAL   ACCOUNT. 

Dealings  with  Frank  J.  George.  Nov.  1.  Bought  merchandise  of  him  on  account,  $450. 
Nov.  2.    Paid  him  cash  on  account,  $150.     Nov.  3.    He  sold  us  merchandise  on  account,  $200. 


^/. 


<!^2^'    / 


^ 


Z-T^^^-f^-lf^^ 


^^j^ 


The  credit  side  of  this  account  shows  that  Frank  J.  George  has  supplied  value  to  our 
business  amounting  to  $650;  the  debit  side  shows  that  he  has  received  value  amounting  to 
$150  from  our  business,  leaving  a  balance  of  $500,  which  is  a  liability  to  the  business.    Why? 

Questions.  AVhen  is  a  person  to  be  debited?  When  credited?  If  a  person  buys  goods 
and  does  not  pay  for  them  at  the  time  of  purchase,  what  is  said  of  the  transaction?  When 
a  person's  account  is  debited  for  more  than  it  is  credited,  does  he  owe  us  or  do  we  owe  him? 
Is  the  difference  a  resource  or  a  liability?  How  is  it  when  the  credit  side  of  a  personal  account 
is  the  larger?    Is  the  difference  a  resource  or  a  liability? 


20 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


January  4,  189-. 

No.  ',). — Merchandise  Bought  on  Account.  This  bill  (No.  9)  of  merchandise  Mr. 
Hammoiul  lias  bought  on  account.  He  will  owe  the  parties  nntil  the  bill  is  jiaid.  Are 
the  jirices  correct?  How  can  j-ou  tell?  Verify  the  addition  and  calculations  and  0.  K.  it,  if 
found  correct.  Store  the  merchandise  if  found  to  agree  with  the  bill.  Debit — Rule  11 ; 
cred it  —  Tittle  16.  Make  an  entry  like  the  following,  substituting  the  correct  amounts  for  the 
amounts  {{iven: 


y/7',ft^^<£^:^ 


■■/^^^-Z-^i^i^i^ 


.-O 


Give  the  reasons  mentally  for  the  debit  (Rule  1)  and  the  credit  {Rule  2).  This  bill  is 
not  receipted.  Why  not?  Fold  the  bill  lengthwise,  face  outward,  and  write  across  the  face 
"  Entered  "  and  the  date.  Place  same  on  the  Invoice  File.  Place  all  subsecjuent  bills  bought 
on  account  on  this  file. 


No.  10. — Mkkchandise  Sold  on  Account.  This  order  (No.  10)  Mr.  Hammond  has 
secured  from  A.  P.  Batson.  Make  out  the  bill,  using  the  prices  given  in  your  price  list,  but 
do  not  receipt  it.  No  terms  are  jilMced  on  the  bill  when  tlie  sale  is  on  account  and  the  time 
is  not  given.  Place  the  number  (10)  of  the  order  on  tiie  bill.  Go  over  the  calculations  and 
addition  to  see  that  you  have  made  no  errors.  Debit  —  R tile  15  ;  credit  —  Rule  12.  Make 
the  entry  as  follows,  placing  the  correct  prices,  extensions  and  amounts  instead  of  the  ones 
given: 


.lr,,■-(H■t^iy^'-C*t-£t7--e-<i^-^^s/-■^a 

■  ■     -:  ^^^^^ /  ' —     ^^ 


^  ^^ 


f' 


I'O 


S  ^i 


Give  the  reason  mentally  for  the  debit  {Rule  1)  and  credit  {Rule  2).  Select  the  merchan- 
dise and  place  it  together  with  the  bill  in  "  Vouchers  for  Others"  receptacle.  Fold  the  order 
lengthwise,  face  outward,  write  across  the  face  "Filled"  and  the  date;  after  which  place  it 
on  the  Voucher  File. 

January  G,  1S9-. 

No  11. —  Merchandise  Sold  on  Account.  Make  out  the  bill  for  this  order  (No.  11) 
following  j'reviuus  instructions.  Place  the  order  number  on  this  and  every  subsequent  bill. 
V'erify  your  extensions  and  addition.  Debit  —  Rule  15  ;  credit  —  Rule  12.  Excepting  the 
items  and  amounts,  this  entry  is  similar  to  entry  for  No.  10. 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


21 


Give  the  reasons  for  tlie  debit  {Jinlc  1)  and  tlie  credit  (Ihile  2).  File  the  order  as  pre- 
viously instructed.     Place  bill  and  the  required  merchandise  in  Vouchers  for  Others. 

First  Repoi't.  Carefully  review  the  General  Rules  for  debiting  and  crediting  and  the 
classes  of  accounts  wliicli  have  been  presented.  Take  a  Report  Blank  and  make  a  report  of 
cash  and  all  merchandise  and  vouchers  intended  for  parties  with  whom  the  business  has  had 
dealings.  Present  same,  together  with  the  vouchers,  cash,  and  merchandise  intended  for 
others,  and  your  bookkeeping  work  to  your  teacher  for  inspection  and  approval;  before  so 
doing,  examine  every  voucher  carefully  to  see  that  you  are  not  presenting  work  that  is  a 
discredit  to  your  ability.  Poor  work  will  not  be  accepted;  your  best  work  will  be  none  too 
good.     Rewrite  all  work  that  is  not  your  best  before  handing  it  in. 

If  your  work  meets  your  teacher's  ajiproval,  make  a  neat  and  careful  transcript  of  your 
journal  sheet  into  your  regular  Journal.  When  completed,  present  it  to  your  teacher,  and 
be  prejiarcd  to  answer  all  cpiestions  he  may  ask  you  iiertaining  to  the  Cash  account.  Pro- 
prietor's account,  Merchandise  account,  Expense  account.  Personal  accounts,  and  the  General 
Rules  for  debiting  and  crediting.     You  may  then  take  up  the  next  transaction. 

January  8,  189-. 

No.  13. — Merchandise  Purchased  on  Account.  Bill  No.  12  is  bought  on  account. 
When  the  terms  are  not  given,  it  is  understood  tliat  the  purchase  is  on  account.  Check  the 
bill  with  the  merchandise  (No.  12).  Verify  the  calculations;  if  everything  is  found  to  bo 
correct,  0.  K.  it  and  store  the  merchandise.  In  case  you  discover  an  error,  rejiort  same  to 
your  teacher.     Debit — Rule  11 ;  credit  —  Rule  16.     This  entry  is  similar  to  entry  for  No.  9. 

Give  the  reasons  mentally  for  the  debit  [Rule  1)  and  credit  {Riile  3).  File  the  bill, 
following  instructions  for  No.  9. 

No.  13. — Cash  Received  on  Account. — This  cash  (No.  13)  is  received  in  part  pay- 
ment of  the  bill  purchased  on  the  4th  inst.  Count  it  carefully.  Debit  —  Rule  3 j  credit  — 
Rule  16.     Make  the  entry  as  follows,  substituting  the  correct  amounts  for  the  amounts  given: 


/^ C/yc^<fi>?td'tr-^'^-^ 


/Ci^otpf i^ 


Give  the  reasons  mentally  for  the  debit  [Rule  1)  and  credit  (Rule  2).  Place  the  cash  in 
the  proper  receptacle.  Write  a  receipt  for  tlie  same,  using  voucher  No.  7  as  a  model. 
Excepting  the  amount,  your  receipt  should  read  as  follows: 

$500/(sV.  ■ (I'"'':..P'.«:??.). ,  Jan.  8,  189-. 

Received  of  A.  P.  Batson,  Five  Hundred  •j^'V Dollars,  to  apply 

on  acct. 

C.  W.   Hammond, 

pgr  (your  name) 

Place  the  receipt  in  Vouchers  for  Others. 


95 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


Jaxcaky  0,  189-. 

No.  14. — Cash  Paid  ok  Account.     Pay  Redfield  &  Son  S300  as  part  payment  of  bill 
No.  9.     Count  out  the  cash.     Debit — Rule  15 ;  credit — Rule  4.     Make  the  entry  us  follows: 


C/St-f-t?/^  Z5C<s-?-^-z^  , 


Give  the  reasons  mentally  for  the  debit  [Rule  1)  aiid  credit  {Rule  2).  Recount  the  cash, 
place  it  in  Cash  Paid  Out  and  take  a  receipt  (No.  14)  for  same.  File  the  receipt  following 
the  instructions  for  Xo.  7. 

No.  15. — Meuchandise  Bought  on  Account.  Look  at  the  terms  of  bill  No.  15. 
C'lieck  mercliandise  (Xo.  15)  with  the  bill.  Verify  the  additions  and  extensions  of  the  bill, 
and,  if  found  correct,  0.  K.  it  and  store  the  nu'rchandisc.  What  do  Mr.  Hammond's  check 
marks  and  0.  K.  indicate?  Debit — Rule  11 ;  credit — Rule  16.  This  entry  is  similar  to 
Nos.  9  and  12.  Give  the  reasons  mentally  for  the  debit  {Rule  1)  and  credit  {RuU  2).  File 
the  liill,  following  instructions  for  IVo.  9. 

Study  the  following  account  and  be  prepared  to  answer  the  questions. 

Bills  Receiva))le.    Under  this  title  are  entered  the  written  promises  of  other  parties, 
l)ayable  at  a  future  time,  which  come  into  the  business,  as  Notes  and  Accepted  Time  Drafts. 
The  Special  Rules  for  debiting  and  crediting  this  account  are: 

17.     Debit  Bills  Receivable  when  received     18.    Credit  Bills  Receivablewhendisposcdof, 
by  the  business.  because  imlue  is  supplied  to  other  accls. 

The  difference  between  the  sides  of  the  account  will  show  the  Bills  Receivable  on  hand. 
The  amount  of  Bills  Receivable  on  hand  is  a  Resource.  The  credit  side  of  Bills  Receivable 
account  can  never  be  larger  than  the  debit,  because  a  greater  amount  cannot  be  disposed  of 
than  has  been  received.  Bills  Receivable  account  is  del)ited  and  credited  with  the  face  value 
of  the  bills  (notes),  the  account  will  therefore  balance  when  all  have  been  disposed  of.  The 
term  Notes  Receivable  is  sometimes  used  instead  of  Bills  Receivable. 


TRANSACTIONS   ILLUSTRATING    BILLS    RECEIVABLE   ACCOUNT. 

Dec.  1.  Proprietor  invests  Chas.  Smith's  note  of  ^400.  Dec.  3.  Received  of  W.  J.  Solly 
his  note,  on  account,  $350.  Dec.  4.  Loaned  Sam'l  Eichert  on  his  note  cash,  $100.  Dec.  6. 
Chas.  Smith  paid  his  note  in  cash,  $400.  Dec.  8.  Gave  J.  A.  Luman,  W.  J.  Solly's  note, 
on  account,  $350. 


CZ-^' 


'^aa 


.  J  ,  -"-7 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


23 


The  debit  side  of  this  account  shows  that  other  persons'  notes  amounting  to  $850  have 
been  received  by  the  business.  The  credit  side  shows  that  other  persons'  notes  amounting 
to  $750  have  been  disposed  of,  leaving  one  note  of  $100  on  hand,  wliich  is  a  Resource.  Why? 
Either  rule  the  account  or  clieck  the  debit  and  credit  items  that  are  equal,  as  illustrated  above. 

Questions.  What  are  included  under  the  title  Bills  Receivable?  When  is  Bills  Receiv- 
able account  debited?  When  credited?  Why  cannot  the  credit  side  of  Bills  Receivable 
account  be  larger  tlian  the  debit?  What  does  the  difEerence  in  Bills  Receivable  account  show? 
Is  the  amount  of  Bills  Receivable  on  hand  a  resource  or  a  liability?     When  will  the  account 

balance? 

January  10,  189-. 

No.  16. —  Note  Received  on  Account.  Tliis  note  (No.  10)  is  in  part  payment  of 
No.  11.  Examine  the  note  carefully.  Whose  written  i)romise  is  it?  Who  should  receive 
credit  for  this  note?  Debit — Rule  17 ;  credit — Rule  16.  Excepting  the  amounts  and  the 
credit,  make  the  entry  as  follows: 


ytS^c^t^cU^vc^^-'c-^ 


^■^^ 


/^j-^ 


Give  the  reasons  mentally  for  the  debit  {Rule  1)  and  credit  (Rule  2).  Place  the  note  in 
the  Cash  Drawer,  where  all  notes  received  from  others  will  be  ke]it  until  paid  or  otherwise 
disposed  of.  Notes  are  not  cash,  and  are  kept  in  the  Cash  Drawer  for  convenience  only. 
No  receipt  is  given  when  a  note  is  received,  as  when  the  note  is  jiaid  it  will  be  indorsed  and 
returned  to  the  maker,  thus  becoming  a  receipt. 

January  11,  ISO- 
No.  17. — Merchandise  Sold  on  Account.  Following  previous  instructions,  make 
out  a  bill  for  this  order  (No.  17).  Satisfy  yourself  that  you  have  made  no  error  in  calcula- 
tions. Debit — Rule  15  ;  cve<i\i — Rule  12.  This  entry  is  similar  to  what  entry?  Give  the 
reasons  mentally  for  the  debit  {Rule  1)  and  credit  {Rule  2).  Place  the  bill  and  required  mer- 
chandise in  the  proper  receptacle.     File  the  order  properly,  observing  previous  instructions. 

January  12,  189-. 

No.  18. — Merchandise  Purchased  on  Account.  Check  this  bill  (No.  18)  with  mer- 
chandise (No.  18).  Verify  the  calculations,  and,  if  found  correct,  0.  K.  the  bill,  observing 
previous  instructions.  Store  the  Merchandise.  Note  the  terms  of  the  bill.  Debit — Rule  11 ; 
credit  —  Rule  16.  Make  the  entry,  relying  upon  the  information  obtained  from  reading  the 
above  rules.  Give  the  reasons  mentally  for  the  debit  {Rule  1)  and  credit  {Rule  2).  File 
the  bill  properly. 

Study  the  following  account  so  that  you  will  be  able  to  answer  the  questions. 

Bills  Payable.     Under  this  title  are  to  be  entered  our  own  written  promises  issued  to 
other  parties,  by  the  business,  payable  at  a  future  time,  as  Notes  and  Accepted  Time  Drafts. 
The  Special  Rules  for  debiting  and  crediting  this  account  are: 

19.    Debit  Bills    Payable   when   redeemed     20.     Credit  Bills  Payable  when  issued,  be- 
{received  back)  by  the  business.  cause  value  is  sujiplied  toother  accounts. 


24 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


The  difference  between  the  sides  of  the  account  will  show  the  amount  of  Bills  Payable 
outstanding.  The  amount  outstanding  is  a  Liability.  Tiie  debit  side  of  the  Bills  Pavable 
account  cannot  be  larger  than  the  credit,  because  a  greater  amount  cannot  be  redeemed  than 
has  been  issued.  Bills  Payable  account  is  debited  and  credited  for  the  face  value  of  the  bills 
(notes).  The  account  will  therefore  balance  when  all  have  been  redeemed.  This  account 
is  sometimes  called  Notes  Payable  instead  of  Bills  Payable. 


TRANSACTIONS   ILLUSTRATING    BILLS   PAYABLE   ACCOUNT. 

May  1.  Gave  W.  W.  Scott  our  note  on  account,  $400.  May  2.  Accepted  Jos.  Frey's 
draft  on  us,  ?!200.  May  3.  Gave  John  Ilauser  our  note  for  $350.  May  30.  Paid  note  favor 
of  W.  W.  Scott,  S-100. 


/y%z^ 


^<p 


''    'A^- 


.  --y%?^' 


•^■^^ 


The  above  account  shows  that  notes  (written  promises)  amounting  to  $950  have  been 
issued  by  the  business,  and  one  note  of  $400  jius  been  redeemed  (jiaid),  leaving  a  balance  of, 
$550  unpaid,  which  is  a  Liability.  Bills  Payable  account  is  ruled  or  checked  similar  to  Bills 
Receivable  account  or  personal  accounts. 

Questions.  What  are  included  under  the  title  Bills  Payable?  When  is  Bills  Payable 
account  credited?  When  debited?  Why  cannot  the  debit  side  of  Bills  Payable  account  be 
larger  than  the  credit?  What  does  the  diflt-reuce  in  Bills  Payable  account  show?  Is  the 
amount  outstanding  a  Liability  or  a  Resource? 

January  14,  189- 

No.  ID. —  Note  Given  on  Account.  Using  voucher  No.  16  as  a  model,  write  a  note 
for  $325  favor  of  Kaufman,  Straus  &  Co.  to  apply  on  account.     Your  note  will  read  as  follows: 

$325VW.  .<.Y.?.ur  place) ^  Jan.  14,  189-. 

Thirty  days  after  date   I    promise  to   pay  Kaufman,   Straus  &  Co.,  or  order, 

Three  Hundred  Twenty-five  WV Dollars,  in  college  currency, 

value  received,  at  my  office. 

No.  1.      Due  Fob.  13,  189-. 

v..  \V.  Hammond, 

(ypM.'!.."""'"''  Attorney. 

Note.— Do  not  add  days  of  grace  to  notes  and  time  drafts,  in  this  work. 
Debit  — /??<?e  i5;  credit— y??<fe  20.     Make  the  entry  "as  follows: 


~  /[/!i-t'e-f^f''Z^!    - 


'^ 


y=^^. 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


Give  the  reasons  mentally  for  the  debit  and  credit.  Place  the  note  in  Vouchers  for  Others. 
Replace  tlie  note  used  as  a  model. 

No.  20. —  Opening  an  Account  with  the  City  Bank.  Mr.  Hammond  has  made 
arrangements  with  the  City  Bank  of  this  city  to  deposit  therein  for  safety  and  convenience 
the  cash  received  by  the  business.  All  transactions  witli  the  bank  are  recorded  in  the  Check 
Book.  No  journal  entry  is  required  wlien  a  deposit  is  made,  the  cash  so  deposited  being 
considered  practically  as  on  hand,  because  it  is  not  paid  out  in  the  sense  of  being  disposed 
of,  as  the  bank  simply  becomes  the  custodian  of  it  in  place  of  our  Cash  Drawer.  You  will 
now  make  a  deposit  of  $5000.  Count  out  the  cash.  Study  the  following  form  of  deposit 
ticket,  after  which  write  one  like  it.  Next  take  your  Check  Book  and  make  a  record  of 
your  deposit  on  the  stub  as  follows:       - 


deposit  ticket. 


STUB    OF   CHECK    BOOK. 


DEPOSITED 

IS   THE 

--GITY    BANK— 

C.  W.   HAMMOND. 

jZfZ^^i^.^  y  ^  rXn 

(g^r.)='t:EAS6:1;tSf  EACH  CHECK  StPARATELY.       ; 

Ctirrcnei/ 

Dollars 

Cents 

Ch.pr.ks 

1 

No 

Date i8g^ 

Order  of 


Fo. 


Amoufzt  of  Bill, 

$ 

PJiCOHVf                   ^ 

$ 

Amounl  of  Check, 

$ 

Dfi-ho.ufpd 

No._ 

-^i8g_^ 

Date 

i8q 

Order  of 

For 

•J~fflpl:> 


Take  the  cash,  deposit  ticket  and  Pass  Book  to  the  bank.  In  case  there  is  no  regular 
bank,  your  teacher  will  receive  your  deposits  and  give  you  credit  for  them  in  your  Pass  Book. 
You  will  be  required  to  write  the  firm's  signature  in  a  book  for  that  jiurpose;  as  you  write 
it  in  this  book,  you  must  always  write  it  when  signing  the  business  papers  of  the  firm. 
Before  leaving  the  bank,  see  that  you  have  been  credited  with  the  proper  amount  in  your 
Pass  Book. 

January  15,  189- 

No.  21. — Merchandise  Sold  on  Account.  Make  out  a  bill  for  this  order  (No.  31). 
Verify  your  calculations.  What  account  has  received  value?  What  account  has  supplied 
value?  In  making  this  entry  apply  the  General  Rules  for  debiting  and  crediting.  Place  the 
bill  and  the  required  merchandise  in  the  proper  receptacle.  File  the  order  as  previously 
instructed. 


2(3 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


January  10,  189-. 

No.  22. — Check  Received  on  Account.  This  check  (No.  22)  is  received  in  part  pay- 
ment of  Xo.  17.  Examine  and  study  the  form  carefully  so  as  to  be  able  to  draw  up  one 
properly  when  rcijuired  to  do  so.  Debit  —  Rule  3 ;  credit  —  Rule  16.  This  entrj-  is  similar 
to  No.  13.  Give  the  reasons  mentally  for  debiting  and  crediting.  Place  the  check  in  the 
Cash  Drawer.  Why?  No  receipt  is  necessary  when  ])ayment  is  made  by  check.  When  the 
check  is  returned  to  the  maker  by  the  bank  on  which  it  is  drawn,  it  is  filed  as  evidence  of 
iniyment. 

A  Clieck  is  a  written  order  by  a  depositor  on  his  bank  requesting  the  bank  to  pay  a 
certain  sum  out  of  his  deposit  to  the  party  named  in  the  check. 

Second  Report.  Keview  the  classes  of  accounts  which  have  been  presented  and  the 
General  Kulos  for  debiting  and  crediting.  Carefully  inspect  all  the  vouchers  intended  for 
others  and  rewrite  those  which  do  not  show  evidence  of  your  best  efforts.  Make  a  report, 
using  a  Report  Blank,  and  present  same,  together  with  the  business  papers  for  others  and  all 
your  bookkeeping  work,  to  your  teacher. 

Having  had  all  your  work  approved,  proceed  to  copy  it  into  your  regular  Journal.  Be 
prepared  to  answer  all  questions  pertaining  to  the  classes  of  accounts  which  have  been 
presented.  Having  answered  all  questions  satisfactorily,  you  may  proceed  with  the  next 
transaction. 

January  17,  1S9-. 

No.  'i'^. —  Check  Given  on  Account.  Pay  Henry  Knefely  &  Son  by  check  $250  to 
apply  on  account.  Take  your  Check  Book,  fill  out  the  stub  of  the  check  as  shown  below, 
then  write  the  check. 


Dale 


Order  o/^ 


■/_p'^i8g^=. 


Amemnt  ef  Bill. 
Diuount 
An:mril  of  Outt. 


^/"M^ 


Tear  out  the  check  and  place  it  in  the  Cash  Paid  Out  receptacle.  Always  fill  out  the  stub 
before  writing  a  check.  Subtract  the  amount  of  the  check  from  the  deposit.  When  Knefely 
&  Son  present  this  check  at  the  bank  it  will  be  paid  out  of  the  deposit  you  have  made,  and  in 
order  to  keep  the  amount  in  the  bank  and  your  Check  Book  balance  alike,  you  must  subtract 
every  check  that  is  issued.  3I:ike  all  entries  for  checks  issued  from  the  stubs  of  the  checks. 
Debit  —  Rule  15;  credit  —  Rule  4-     Tliis  entry  is  similar  to  all  entries  for  cash  jiaid  out. 

January  18,  189-. 

No.  24. —  Merchandise  Sold  on  Account.  Bill  the  goods  called  for  in  this  order 
(No.  24).  Place  the  terms,  "20  das.,"  on  your  bill.  Recalculate  the  items.  What  account 
has  received  value?     What  account  has  supplied  value?    In  making  this  entry  apply  the 


General  Rules  {1  and  2)  for  debiting  and  crediting, 
disc  in  Vouchers  for  Others.     File  the  order. 


Place  the  bill  and  required  merchan- 


office  routine  and  bookkeeping.  27 

January  30,  189-, 

No.  25. — Check  Eeceited  on  Account.  This  check  (No.  25)  is  in  part  payment  of 
No.  24.  What  account  has  received  value?  What  account  lias  supplied  it?  Make  this 
entry,  applying  the  General  Rules  for  debiting  and  crediting.  Place  the  check  in  the  Cash 
Drawer. 

January  21,  189- 

No.  26. — Note  Given  in  Full  of  Account.  Write  a  30-day  note  in  favor  of  Henry 
Knefely  &  Son  for  the  balance  due  them,  making  it  payable  at  Mr.  Hammond's  office. 
Examine  it  carefully  to  see  that  you  have  made  no  error.    Debit — Rule  15 ;  credit — Rule  SO. 

Excepting  the  explanation,  this  entry  is  similar  to  No.  19.  Give  the  reasons  mentally 
for  the  debit  and  credit.     Place  the  note  in  Vouchers  for  Others. 


January  22,  189-. 

No.  27. — Merchandise  Purchased  on  Account.  Check  this  bill  (No.  27)  with  the 
merchandise  (No.  27).  Verify  the  calculations  of  the  bill;  if  found  correct,  0.  K.  it.  Store 
the  merchandise.  What  account  has  received  value?  What  account  has  supplied  it?  In 
making  this  entry  apply  the  General  Rules.     File  the  bill  properly. 

January  23,  189-. 

No.  28. — Check  Given  in  Part  Payment.  Pay  A.  Paul,  Jr.,  $300  by  check.  Fill 
out  the  stub  of  the  check,  deduct  the  amount  from  the  amount  in  tiie  bank,  then  write  the 
check.  Tear  it  out  and  place  it  in  Cash  Paid  Out.  What  account  has  received  value? 
What  account  has  supplied  it?  Make  this  entry  from  the  stub  of  the  check,  applying  the 
General  Rules.     Are  you  certain  that  you  have  not  omitted  any  of  the  details? 

January  25,  189-. 

No.  29. — Merchandise  Bought  on  Account.  Check  bill  No.  29  with  the  merchan- 
dise (No.  29).  Verify  the  addition  aiid  extensions  of  the  bill.  0.  K.  it  if  no  errors  are 
discovered.  Store  merchandise.  What  account  has  received  value?  What  account  has 
supplied  it?  In  making  this  entry  apply  the  General  Rules.  Place  the  bill  on  the  Invoice 
File. 

January  27,  189-. 

No.  30. — Merchandise  Sold  on  Account.  Bill  the  merchandise  called  for  in  this 
order  (No.  30).  Go  over  your  calculations.  Does  your  writing  show  evidence  of  your  best 
efforts?  What  account  has  received  value?  What  account  bus  supplied  it?  In  making  this 
entry  apply  the  General  Rules.  Place  the  bill  and  tiie  required  merchandise  in  the  jiroper 
receptacle  and  file  the  order. 

January  29,  1S9-. 

No.  31. — Proprietor  Draws  Cash  for  Private  Use.  Mr.  Hammond  wishes  $100 
for  private  use.     Take  your  Check  Book,  fill  out  the  stub  of  the  check;  after  deductmg  the 


28 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


amount  write  the  check  making  it  payable  to  C.  W.  Hammond.     Place  it  in  Casli  Paid  Out. 
Debit — Ride  6j  credit — Jiule  4-     Make  the  entry  as  follows: 


^f- 


-^r 


-— -JZ^"*— l-jS^-ili'S^JZ-^  ■ 


1 

-^     /tfi^ 

y  £?  :? 

Give  the  reasons  mentally  for  the  debit  and  credit. 

January  30,  189-. 

No.  32. —  Mekchandise  Sold  on  Account.  Make  out  the  bill  for  order  A'o.  32. 
Place  the  terms,  "  15  das.,"  on  the  bill.  Verify  your  calculations.  What  account  has 
received  value?  What  account  has  supplied  it?  Apply  the  General  Rules  in  makinj;  this 
entry.  Be  sure  to  place  the  bill  and  requind  merchandise  where  they  belong  and  lile  the 
order  properly. 

January  31,  189-. 

No.  33. —  Bookkeeper's  Salary  Paid  in  Cash.  Pay  yourself  §50  by  check  as  salary 
for  the  first  month.  Fill  out  the  stub,  deduct  the  amount,  and  write  the  check.  Debit  — 
Ruh  13 ;  credit  —  Rule  4-  This  entry  is  similar  to  entry  for  Xo.  7.  Give  the  reasons  men- 
tally for  the  debit  and  the  credit.     Place  the  check  in  Cash  Paid  Out. 

No.  34. — Drayage  Bill  for  the  Month  Paid  in  Cash.  This  bill  (No.  34)  is  for 
hauling  done  for  the  business  during  the  mouth.  The  bill  is  receijjted  and  Mr.  Hammond 
has  0.  K.'d  it.  Pay  it  in  currency,  placing  the  cash  in  the  proper  receptacle.  Debit  — 
Rule  IS ;  credit — Rule  4-  This  entry  is  similar  to  entry  for  No.  33.  Give  the  reasons 
mentally  for  the  debit  and  credit.     Place  the  bill  on  the  Voucher  File. 

No.  35. — Note  Received  on  Account.  This  note  (No.  35)  is  to  apply  on  account  of 
No.  32.  Debit  —  Ji'ide  17 ;  credit — Rule  16.  Make  the  entry  similar  to  the  entry  for  the 
16th  transaction.  Give  the  reasons  for  debiting  and  crediting.  Place  the  note  in  the  Cash 
Drawer. 

No.  3G. — Merchandise  Sold  on  Account.  Bill  the  merchandise  called  for  in  this 
order  (Xo.  3G).  Calculate  the  items  of  the  bill  a  second  time.  What  account  has  received 
value?  What  account  has  supplied  it?  Ap])ly  the  General  Rules  and  make  the  entry.  File 
the  order  and  place  the  merchandise  and  bill  in  the  proper  receptacle. 

No.  37. — Cash  Items  Deposited  in  Bank.  You  will  now  indorse  all  the  checks  you 
have  in  the  Cash  Drawer,  by  writing 

"Pay  to  the  order  of  City  Bank, 

C.  IF.  Hammond, 
.._ y.?.V.r..!!S!??.*r Atty." 

across  the  back  of  each  check,  beginning  near  the  left-band  end.  Bo  careful  not  to  indorse 
the  notes.  Note  the  dilTerencc  between  checks  and  notes.  Count  all  the  currency  in  the 
Cash  Drawer.  Make  out  a  deposit  ticket,  entering  tlie  amount  of  currency  opposite  the 
word  "Currency."  Enter  each  check  separately  where  indicated  on  the  deposit  ticket. 
Add  the  items,  including  the  currency.  Enter  tlic  amount  of  the  deposit  on  the  right- 
hand  stub  of  your  Clieck  Book,  following  previous  iustruclions;  directly  opposite  on  the 


OFFICE    ROUTINE    AND    BOOKKEEPING;  29 

left-hiind  stub  make  a  duplicate  of  the  items  on  tlie  deposit  ticket.  Tills  is  done  that  you 
will  have  a  detailed  record  of  your  deposits  in  case  you  have  made  an  error  and  wisli  to  know 
of  what  items  your  deposits  consist.  Consult  your  teacher  about  this  or  any  instructions 
that  you  do  not  fully  understand.  Take  your  deposit,  deposit  ticket,  and  Pass  Book  to  the 
bank.  See  that  you  are  credited  with  the  i)roj)ur  amount  in  the  Pass  Book,  and  leave  it  at 
the  bank  to  be  written  up. 

Third  Report.  Make  a  report  on  a  Report  Blank  of  all  vouchers,  merchandise,  and 
cash  intended  fur  other  parties.  Present  your  report,  togetiier  with  the  vouchers,  etc.,  and 
your  bookkeeping  work  for  inspection  and  approval.  Do  not  present  any  work  which  is  not 
your  best.  Be  prepared  to  answer  any  questions  that  your  teacher  may  ask  you  on  the  work 
gone  over.  Next  make  a  careful  transcript  of  your  journal  sheet  into  your  regular  Journal; 
when  completed,  present  your  Journal  for  approval. 

Directions  for  Posting.  Your  next  work  will  be  to  post  the  journal  debits  and  credits 
to  your  Ledger.  You  have  had  considerable  practice  in  posting  from  the  Model  Journal 
and  the  one  following  it.  If  you  have  been  diligent  and  exercised  a  constant  watclifulness 
as  you  proceeded,  you  ought  to  experience  no  difficulty,  as  the  process  is  purely  mechanical 
and  the  raetliod  never  varies.  However,  to  make  certain  that  you  will  start  aright,  and  that 
any  wrong  impression  you  have  formed  may  be  corrected,  a  guide  for  posting  the  work 
for  this  montli  is  presented  herewith.  Read  tlie  first  direction,  then  perform  the  work 
exactly  as  directed  before  reading  further.  Read  the  second  direction  and  perform  the  work. 
Continue  in  this  way  until  you  are  able  to  proceed  without  directions. 

First  Entrt.  1.  Place  your  Journal  and  Ledger  before  you  on  the  desk,  turn  to  page  2 
of  your  Ledger  and  write  Cash  in  a  plain,  bold  hand  on  the  upper  line.  By  so  doing  you 
have  opened  the  Cash  account.  2.  On  the  debit  side  of  this  account;  i.  e.,  on  the  left-hand 
side,  enter  in  the  date  column,  Jan.  1,  placing  the  year  above.  3.  In  the  journal-page  column, 
enter  the  page  of  the  Journal,  1.  4.  In  the  amount  column,  enter  the  amount  invested. 
5.  Turn  to  your  .Journal  and  enter  the  page  of  the  Ledger,  2,  in  the  column  at  the  left  of 
Cash  to  indicate  that  this  item  has  been  posted. 

1.  Turn  to  page  1  of  your  Ledger.  In  a  bold,  plain  hand  write  C.  W.  Hammond  on  the 
upper  line.  2.  On  the  credit  side  of  the  account;  i.  e.,  on  the  right-hand  side,  enter  in  the 
date  column  the  date,  Jan.  1,  placing  the  year  above.  3.  In  the  journal-page  column,  enter 
the  page  of  your  Journal,  i.  4.  In  the  amount  column,  enter  the  amount  invested.  5.  Turn 
to  your  Journal  and  enter  the  page  of  the  Ledger,  1,  in  the  column  at  the  left  of  C.  W. 
Hammond's  name  as  a  check  to  indicate  tliat  the  item  has  been  posted.  This  comj)letes  the 
posting  of  the  first  entry.  Keep  a  clean  blotter  under  your  hand  when  making  records  in 
your  books. 

Second  Entry.  1.  Open  an  account  with  Merchandise  at  the  to]i  of  page  3  in  your 
Ledger.  2.  On  the  debit  side  —  that  is,  on  the  left-hand  side  —  enter  in  the  date  column  the 
date,  Jan.  1,  placing  the  year  above.  3.  Enter  the  journal  page,  1.  4.  Enter  the  amount. 
5.  Turn  to  the  Journal  and  enter  the  ledger  ]iage,  3,  in  the  column  at  the  left  of  Merchan- 
dise as  a  check  to  show  that  it  has  been  posted. 

1.  Turn  to  Cash  account  on  page  2  in  the  Ledger  and  enter  on  the  credit  side;  i.  e., 
right-hand  side,  the  date,  Jan.  1,  placing  the  year  above.  2.  Enter  the  journal  page,  1. 
3.  Enter  the  amount.  4.  Turn  to  the  Journal  and  enter  the  ledger  page,  ~,  at  the  left  of 
Cash  as  a  check. 


30  OFFICE    ROUTINE    AND    BOOKKEEPING. 

Thiud  Entry.  Tliis  entry  is  essentiallj'  the  same  as  the  second  entrj',  therefore,  follow 
the  same  instructions  for  posting. 

FocRTn  Entry.  1.  Turn  to  Cash  account  on  page  2  in  your  Ledger  and  enter  on  the 
debit  side;  ('.  e.,  the  left-hand  side  of  the  account  the  date,  1.  2.  Enter  the  journal  page,  1. 
3.  Enter  the  amount.  4.  Turn  to  your  Journal  and  j)ostmark  as  before  by  entering  the 
ledger  page,  2,  at  the  left  of  Cash. 

1.  Turn  to  Merchandise  account  on  page  3  and  enter  on  the  credit  side  the  date,  Jan.  1, 
placing  the  year  above.  2.  Enter  the  journal  i)age,  1.  3.  Enter  the  amount.  4.  Turn  to 
your  Journal  and  check  opposite  Merchandise  by  entering  the  ledger  page,  S. 

Fifth  Entry.  This  entry  is  similar  to  entries  2  and  3,  therefore,  no  instructions  for 
posting  are  given;  follow  jirevious  instructions. 

Sixth  Entry.  1.  Open  an  account  willi  Expense  at  the  top  of  page  4.  2.  Enter  on 
the  debit  side  the  date,  </rtw.  2,  writing  the  year  above.  3.  Enter  the  journal  page.  4.  Enter 
the  amount.     5.    Check  in  the  Journal. 

Turn  to  the  Casli  account  on  page  2  and  enter  on  the  credit  side  the  date,  2,  the  journal 
page,  1,  the  amount;  then  check  in  the  Journal. 

Seventh  Entry.     Follow  instructions  for  No.  6. 

Eighth  Entry.     Follow  instructions  for  No.  4. 

Ninth  Entry.  On  the  debit  side  of  ^lerchandise  account  enter  the  date;  the  journal 
page;  the  amount;  then  check  in  the  Journal.  Next  open  an  account  with  Kcdfield  k,  tSon, 
141  Dock  St.,  City,  on  page  14,  and  enter  on  the  credit  side  the  date,  including  the  year; 
journal  page;  amount;  then  check  in  the  Jounial. 

Note. — By  following  the  directions  for  opening  accounts  ns  given,  the  accounts  in  your  Ledger  will  be 
grouped  under  four  divisions.  The  first,  beginning  on  page  1,  contains  the  Proprietor's  account;  the  second, 
beginning  on  page  2,  contains  the  Property  and  Loss  it  Gain  accounts;  the  third,  beginning  on  page  9,  con- 
taihs  the  Personal  Accounts  Receivable;  and  the  foiirlli,  l)eginning  on  page  14,  contains  the  Personal  Accounts 
Payable.  Loss  &  Gain  accounts  are  the  accounts  tliat  sliow  either  Losses  or  Gains;  Personal  Accounts 
Receivable  are  the  accounts  with  persons  who  become  indebted  to  the  business;  and  Personal  Accounts  Pay- 
able are  the  accounts  with  persons  or  firms  to  whom  the  business  becomes  indebted.  It  is,  however,  not 
absolutely  necessary  that  the  ledger  accounts  be  grouped  in  the  above  manner.  See  Model  ledger,  pages  4 
and  5. 

Tenth  Entry.  Open  an  account  with  A.  P.  Batson,  944  Market  St.,  City,  on  page  9, 
and  enter  on  the  debit  side  tiio  date;  journal  page;  the  amount;  then  chock  in  tlie  Jouriuil. 
Nexi,  turn  to  ilerchandise  account  and  enter  on  the  credit  side  the  date,  journal  page  and 
amount.     Check  in  the  Journal. 

Elkvkntii   Entry,     l^'ollow  instructions  for  No.  10. 

TwELiTH  Entry.  Open  an  ticcount  with  Thos.  J.  Johnston  &  Co.,  715  Broadway,  City, 
on  the  14th  line  of  page  14,  then  post  the  debit  and  credit,  following  instructions  for  No.  9. 

Thirteenth  Entry.  Post  to  the  debit  side  of  Cash  account  on  page  2,  following  the 
instructions  jn'eviously  given.  Post  to  the  credit  side  of  A.  P.  Batson's  account,  observing 
previous  instructions.     Have  you  postmarked  both  tlie  debit  and  the  credit  in  the  Journal? 

Fourteenth  Entry.  Post  to  tlie  debit  of  Redfield  &  Son's  account:  jiost  to  the  credit  of 
Cash  account.     Have  you  done  everything  in  the  exact  order  indicated  in  previous  instructions? 


OFFICE    ROUTINE    AND    BOCjKKEEI'ING.  31 

Fifteenth  Entry.  Post  to  the  debit  of  Merchandise  account  and  chock  in  the  Journal. 
Open  an  account  with  Henry  Knefely  &  Son,  5  E.  Pratt  St.,  City,  on  the  29th  line  of  page 
14;  jiost  to  the  credit  of  their  account  and  check  in  tlie  Journal. 

Sixteenth  Entry.  Open  an  account  with  Bills  Receivable  on  the  19th  line  of  page  2 
and  post  to  the  debit  side,  after  which  check  in  the  Journal.  Post  to  the  credit  of  A.  P. 
Batson's  account. 

Seventeenth  Entry.  Open  an  account  with  Frey  &  Thomas,  630  Jefferson  St.,  City, 
on  the  19th  line  of  page  9  and  ])ost  to  the  debit  of  their  account,  after  which  check  in  the 
Journal.     Post  to  the  credit  of  Merchandise  account  and  check  in  the  Journal. 

Eighteenth  Entry.  Post  to  the  debit  of  Merchandise  account  and  check  in  the  Journal. 
Open  an  account  with  Kaufman,  Straus  &  Co.,  Fourth  Ave.,  City,  top  of  page  15  and  post 
to  the  credit  of  their  account,  after  which  check  iu  the  Journal. 

Nineteenth  Entry.  Post  to  the  debit  of  Kaufman,  Straus  &  Co.'s  account  and  check 
in  the  Journal.  Open  an  account  with  Bills  Payable  on  the  31st  line  of  page  3  and  post  to 
the  credit  of  that  account.     Do  not  forget  to  check  in  the  Journal. 

Twentieth,  Twenty-first  and  Twenty-second  Entries.  Instructions  for  similar 
entries  have  been  given. 

Twenty-third  Entry.  Open  an  account  with  H.  B.  Philips  &  Co.,  S.  W.  Cor.  8th  & 
Main,  City,  on  the  33d  line  of  page  9  and  post  to  the  debit  of  their  account;  post  to  the 
credit  of  Merchandise.     Do  not  forget  to  check  in  the  Journal. 

Twenty-fourth  and  Twenty-fifth  Entries.  Instructions  for  similar  entries  have 
been  given. 

Either  check  or  rule  Henry  Knefely  &  Son's  account,  as  it  balances.  Do  not  fail  to 
either  check  or  rule  (as  your  teacher  may  direct)  all  personal  accounts  found  to  balance 
while  posting  your  subsequent  work. 

Twenty-sixth  Entry.  Post  to  the  debit  of  Merchandise.  Open  an  account  with  A. 
Paul,  Jr.,  54  Grace  Ave.,  City,  on  the  14th  line  of  page  15  and  post  to  the  credit  of  his 
account. 

Twenty-seventh  Entry.     Instructions  for  a  similar  entry  have  been  given. 

Twenty-eighth  Entry.  Post  to  the  debit  of  Merchandise.  Open  an  account  with 
Barlow,  Henderson  Co.,  Cor.  3d  Ave.  &  11th  St.,  City,  on  the  39th  line  of  page  15  and  post 
to  the  credit  of  tlieir  account. 

Twenty-ninth  Entry.  Open  an  account  with  Harry  Powell,  420  Chestnut  St.,  City, 
on  page  10.     Post  to  the  debit  of  his  account;  post  to  the  credit  of  Merchandise. 

Thirtieth  Entry.  Post  to  the  debit  of  C.  W.  Hammond's  account;  post  to  the  credit 
of  Cash. 

For  the  remaining  entries,  consult  instructions  for  entries  of  a  similar  nature. 

Having  finished  the  posting  of  your  Ledger,  carefully  review  same,  placing  a  check  (s/) 
in  pencil  at  the  left  of  the  amount  of  each  item  iu  the  Ledger  as  you  proceed.  The  points 
to  be  noted  while  reviewing  your  posting  are  as  follows:  1.  See  that  the  journal  debits  have 
been  posted  to  the  debit  side  of  the  proper  accounts  in  the  Ledger.  3.  That  the  journal 
credits  have  been  posted  to  the  credit  side  of  the  jn-ojjer  accounts  in  the  Ledger.  3.  That 
none  of  the  details  necessary  to  make  the  work  complete  have  been  omitted.  4.  That  the 
proper  amounts  have  been  posted  from  the  Journal  to  the  Ledger.  5.  That  no  entries  have 
been  omitted.     6.   That  no  entries  have  been  posted  twice. 


3-2 


OFFICE    kUUTINE    AND    BOOKKEEPING. 


Muiitiily  Stateiiumts.  It  is  the  custom  of  business  houses  to  render  statements  to 
their  customers  once  a  montli.  A  monthly  statement  contains  tlie  name  of  the  customer, 
toj^cther  witii  liis  address,  and  a  copy  of  the  Ledger  debits  and  credits  of  his  account.  Tiie 
energetic  bookkeeper  will  jjrepare  his  statements  so  as  to  have  them  ready  for  mailing  or 
deliver)'  to  customers  promptly  on  the  first  of  each  month.  He,  also,  exercises  great  care  in 
jireparing  these  statements  so  as  to  make  them  ajjjicar  as  attractive  as  possible. 


MONTHLY  Statement. 


/g? 


/^ 


M_^^^^ 


..-^. 


^189. 


^  <^44- 


^^^.^^.^-l^-T^U^ 


in  Account  w„h   Q^    \Jj ^    HAn^ONDo 


122-12^    Mai.n    Strekx. 


Carefully  study  the  form  of  statement  given  herewith.  Turn  to  page  0  of  your  Ledger 
and  make  a  statement  of  A.  P.  Batson's  account,  as  shown  in  the  above  illustration.  Be 
sure  to  place  on  the  statement  the  two  debit  items  left  blank  in  the  illustration.  Make  out 
statements  against  all  parties  who  owe  the  business,  and  present  them  for  inspection  and 
approval. 

Having  had  your  statements  a]iproved,  insert  them  in  envelopes  neatly  and  properly 
addressed,  but  do  not  seal  them.     Place  the  envelopes  in  Vouchers  for  Otiiers. 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


33 


Taking  a  Trial  Balance.  Peucil  foot  all  the  accounts  in  the  Ledger  preparatory  to 
taking  a  Trial  Balance.  Use  a  sharp  pointed  pencil  for  work  of  this  kind,  as  the  figures 
can  he  made  much  smaller  and  more  legible  than  with  a  dull  pointed  one.  Jlake  your  pencil 
footings  plain  and  distinct:,  but  quite  small;  do  not  draw  lines  in  the  columns  to  be  added, 
as  the  size  and  peculiar  position  of  the  footing  serves  to  distinguish  it  from  the  other  items 
in  the  account.     When  there  is  but  one  item,  no  ]ienoil  footing  is  necessary. 

Take  a  journal  sheet,  head  it  as  follows:  Trutl  Balance,  Jan.  SI,  180-.  Commencing 
with  the  first  account  in  your  Ledger,  proceed  to  make  a  Trial  Balance,  using  the  form  on 
page  7  as  a  Model.  Copy  the  number  of  the  page  on  which  the  account  is  found  in  the 
Ledger,  the  name  of  the  account,  and  the  debit  or  credit  balance.  Compare  the  balance  as 
shown  by  the  Cash  account  with  the  balance  of  cash  on  hand  as  shown  by  the  Check  Book. 
Proceed  until  all  the  balances  have  been  entered,  after  which  add  the  sides  to  see  if  they  are 
equal.  If  found  to  be  equal,  submit  your  Trial  Balance  for  approval.  Should  it  fail  to 
balance,  it  will  be  necessary  for  you  to  go  over  the  work  and  locate  the  error.  Do  not  ask 
your  teacher  to  aid  you  before  you  have  made  a  diligent  effort  to  find  your  mistakes.  When 
your  work  is  approved,  place  the  sheet  containing  your  Trial  Balance  in  your  Balance  Book 
and  proceed  to  take  an  account  of  the  Resources  and  Liabilities  of  the  Model  Set  as  explained 
in  the  following  paragraphs. 

luveiitory  of  Resources  and  Liabilities — Model  Set.  As  you  have  already  learned, 
a  Resource  is  either  property  on  hand  or  au  'imount  due  the  business.  A  Liability  is  an 
amount  owed  liy  the  business.  The  difference  between  the  Resources  and  Liabilities  of  any 
business  is  the  Proprietor's  present  capital. 

The  first  thing  to  be  done  in  ascertaining  the  Inventory  of  Resources  and  Liabilities  is 
to  find  the  current  value  of  the  merchandise  remaining  unsold.  The  merchandise  on  hand 
belonging  to  the  business  represented  by  the  Model  Set  and  its  value  is  given  below. 


vj?  ^  ^ 


^tPiP 


/  a  o 


^J'^. 


Ill  business  the  amount  of  goods  on  hand  is  usually  ascertained  by  going  through  the 
store,  measuring,  weighing,  or  counting  the  various  articles,  their  value  usually  being  esti- 
mated at  current  cost.  When  the  merchandise  inventory  includes  a  long  list  of  goods  a 
separate  book  called  a  Stock  or  Inventory  Book  is  cm]iloyed. 

Having  ascertained  the  value  of  property  on  hand,  the  remainder  of  the  facts  can  bo 
ascertained  from  the  books,  or  more  readily  from  the  Trial  Balance.  Refer  to  the  Model 
Trial  Balance  No.  2  and  trace  the  items  to  the  Inventory  given  below.  Observe  that  Wm. 
Wood's  capital,  the  merchandise  and  expense  debits  are  not  taken  from  the  Trial  Balance. 
Why  not?  Wm.  Wood's  capital  is  the  difference  between  the  Resources  and  Liabilities. 
His  cajjital  when  he  began  business  was  $5000,  he  withdrew  $75,  leaving  a  capital  of  |i4925. 
Subtracting  $4925  from  $5168.50  equals  $243.50,  the  amount  he  gained. 


34 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


<^  9^  <=>4:±f:^^^'^---^^^<^i!^C£^  yV^  /<^. 


^^ 


^ 


^Z-=i>_ 


V^'->t'g>'l'C^ 


i!5'-^-?ti' 


/  6  o  n 


*To  bo  written  in  red  ink. 

The  above  Inventory  of  Resources  and  Liabilities  gives  the  results  of  the  business,  but  it 
does  not  siiow  the  sources  of  Losses  and  Gains. 

Model  Balance  Sheet*  To  ascertain  the  .sources  of  Losses  and  Gains  it  will  be  necessary 
to  make  a  detailed  aiialy.--i.s  of  the  various  ledger  accounts.  Tliis  will  be  best  accomplished  by 
making  a  Balance  Sheet.  Your  attcniion  is  now  directed  to  the  Model  Balance  Sheet  given 
on  page  36. 

Tiic  first  step  to  be  taken  is  to  make  an  exact  copy  of  the  Model  Trial  Balance  No.  2  on 
a  Balance  Sheet  blank,  first  heading  it  as  in  the  Model.  Before  reading  further  you  will  do 
the  work  as  above  indicated.  In  performing  this  work  it  is  of  the  utmost  importance  to  you 
that  you  do  not  merely  cojiy  the  form  of  Balance  Sheet.  To  do  the  work  understandingly^ 
securing  a  knowledge  of  the  relations  of  the  various  accounts  to  the  business,  it  is  absolutely 
essential  that  you  take  each  step  in  the  order  indicated,  and  perform  tlic  work  precisely  as 
directed  in  the  instructions. 

Your  next  step  will  be  to  extend  the  Losses,  Gains,  Eesourcesand  Liabilities  as  shown  by 
the  various  accounts,  as  follows: 

Cash. —  Commence  with  Cash,  it  being  the  first  account  on  your  Biilance  Sheet  following 
the  Proprietor's  account.  You  have  on  hand  $4676.50,  which  you  will  extend  to  the  Resource 
column,  because  property  on  hand  is  a  Resource. 

Meijciiandisk. — First  enter  in  the  Resource  column  tlie  i^Icrcliandisc  Inventory,  l>332, 
as  shown  ou  page  33,  because  property  on  hand  is  a  Resource.  Make  the  entry  in  red  ink, 
to  distinguish  it  from  the  Resources  shown  by  the  ledger  accounts.  Note  that  the  debit 
(cost)  side  shows  a  balance  of  ^lO;  therefore  the  goods  j'urcliascd  amount  to  ?iTO  more  than 
those  sold.  "Were  there  none  gn  hand,  the  business  would  have  lost  $70  on  merchandise. 
There  is,  however,  a  Merchandise  Inventory  valued  at  $332;  subtracting  ^HO  from  the  value 
of  the  goods  on  hand  gives  $262,  the  amount  gained.  Extend  this  amount  to  the  Gain 
column. 

Expense. — The  debit  footing,  #18.50,  shows  the  total  outlay.  Extend  this  amount  to 
the  Loss  column,  because  an  account  which  costs  more  than  it  jjroduces  exhibits  a  Loss. 


OFFICE    KOUTIiNi;    AND    BOOKKEEPING.  35 

J.  W.  Winter. —The  creJit  balance,  §90,  is  tlic  amount  the  l)u.?incss  still  owes  him, 
which  yon  will  extend  to  the  Liability  coliunn,  because  an  amount  owing  by  the  business  is 
a  Liability. 

Note.— In  extending  .S.  W.  Snow's  account,  consult  tlic  explanjition  given  for  J.  W.  Winter,  above. 

James  SpkinCx. — The  debit  balance,  $50,  is  the  anmunt  he  owes  the  business,  which  you 
will  extend  to  the  Resource  column,  because  an  amount  owing  to  the  business  is  a  Resource. 

Bills  Receivable.— The  debit  balance,  ^1600,  shows  the  total  amount  of  notes  on  hand. 
Extend  this  amount  to  the  Resource  column,  because  an  amount  owing  to  the  business  is  a 
Resource. 

Bills  Payable. — The  credit  balance,  $1000,  shows  the  t.otal  amount  of  notes  out- 
standing. Extend  this  amount  to  the  Liability  column,  because  an  amount  owing  by  the 
business  is  a  Liability. 

Net  Gain  and  Present  Capital.  Foot  the  Resource,  Liability,  and  Loss  and  Gain 
columns  of  the  Balance  Sheet,  and  extend  the  results  as  shown  in  the  form  on  i)agc  36. 

Extend  into  the  Loss  column,  in  red  ink,  the  Xet  Gain,  $243.50,  which  is  the  difference 
between  the  total  Gains  and  the  total  Losses. 

To  the  Proprietor's  credit  balance,  $49'.25,  add  the  Net  Gain,  and  extend  the  amount, 
$51G8.50,  whicli  is  the  Present  Capital,  into  the  Liability  column. 

The  Net  Gain  is  found,  as  shown  in  the  accompanying  Balance  Sheet,  by  subtracting  the 
total  Gains  from  the  total  Losses,  as  exhibited  by  the  different  accounts  showing  Losses  and 
Gains.  As  illustrated  by  the  Liventory  of  Resources  and  Liabilities,  the  Net  Gain  may  also 
be  found  by  subtracting  the  Proprietor's  capital  on  commencing  from  the  Present  Capital; 
the  Present  Capital  at  any  time  being  the  difference  between  the  Resources  and  Liabilities. 

It  will  also  be  seen  that  the  Present  Capital  in  double  entry  bookkeeping  may  be  found 
in  two  ways;  either  by  adding  the  Net  Gain  to  the  Net  Credit  or  Capital  on  commencing, 
or  by  finding  the  difference  between  the  Resources  and  Liabilities,  as  illustrated  by  the 
Inventory  of  Resources  and  Liabilities. 

When  the  Losses  exceed  the  Gains  the  difference  is  called  the  "Net  Loss;'"  in  such  cases, 
when  making  out  the  Balance  Sheet,  the  Net  Loss  must  be  deducted  from  the  Net  Credit  or 
Capital  on  commencing,  to  find  the  Present  Capital. 

When  the  Liabilities  exceed  the  Resources,  the  Proprietor  is  Insolvent;  i.  e.,  he  is  unable 
to  pay  what  is  due  others. 

As  the  Present  Capital  of  any  business  belongs  to  the  proprietor  or  stockholders,  it  is  in 
that  sense  a  Liability  to  the  business.  This  Liability,  however,  must  not  be  confounded 
with  the  regular  Resources  and  Liabilities,  the  difference  between  which  is  the  Present 
Capital,  or  the  value  of  the  business  belonging  to  the  proprietor. 

2SfoTE.— Read  Observations  on  page  7  if  j'ou  had  any  difficulty  in  understanding  the  work  given  on  pages 
33  to  35.     To  do  so  will  aid  you  in  comprehending  the  work  on  the  following  three  pages. 


36 


^£^^?^  >¥^^in^-z:/c 


OFFICE    ROUTINE    AND    BOOKKEEPING, 


^. 


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LC4.^e-<^  Ci<«;^'«-s2*z<^ 


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'^j^. 


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^1 


/C/C  ■i-j'jjz. 


£a: 


*Net  Oain,  «^.,y 


are  to  be  written  in  red  ink. 


Having  ascertained]  by  the  foregoing  Balance  Sheet  the  sources  of  Losses  and  Gains  and 
the  true  condition  of  the  business  at  tlie  present  time;  /.  e.,  wliat  tlic  Net  Gain  has  been, 
how  much  tlic  jiroprictor  is  wortli,  and  of  what  liis  worth  consists,  it  is  desired  to  make  the 
Proprietor's  account  in  the  Ledger  exliibit  the  Present  Capital. 

To  do  this,  the  accounts  showing  Losses  and  Gains  must  be  closed  and  the  Xet  Gain  entered 
in  the  Proprietor's  account.  It  is  only  necessary  to  close  the  accounts  which  show  Losses 
and  Gains,  because  in  thcni  liave  been  entered  all  transiictions  making  the  proprietor  worth 
more  or  less.  The  other  accounts,  those  cxliibiting  Resources  and  Liabilities,  sim])ly  show  of 
what  the  Present  Cajjital  consists,  and  closing  them  would  in  no  way  affect  the  Proj)rietor'8- 
account. 

{'losiiic  tlio  Accounts  Sliowiiis  Losses  and  Gains.  Following  the  last  account 
in  your  Ledjrer  for  the  Mode!  Set,  o)iiii  an  account  with  J^ioss  &  (Jain,  to  whicli  are  to  be 
carried  the  Losses  and  Gains  from  the  various  accounts  as  they  are  closed,  and  from  which 
the  Net  Gain  is  to  be  finally  transferred  to  the  Proprietor's  account.  Proceed  to  close  your 
best  Ijcdger  of  the  Model  Set,  observing  the  following  instructions  and  rcforriug  to  the 
Model  on  page  38. 


OFFICE    ROUTINE    AND    BOOKKEEPING.  37 

Merchandise. — The  Inventory  is  first  to  be  entered  on  the  credit  side  of  this  account^, 
that  it  may  be  added  to  the  sales.  (This  is  equivalent  to  deducting  it  from  the  debit  or 
cost  side.)  Proceed  as  follows:  On  the  credit  side  of  the  account  enter  the  Inventory. 
Write  in  red  ink,  Mar.  15,  Inventory,  332.  Then  to  close  the  account,  on  the  smaller 
side  —  which  is  the  debit  —  enter  the  difference  between  the  sides,  that  is  the  Gain.  Write 
in  red  ink.  Mar.  15,  Gain,  262.  Next  rule  and  foot  the  account.  (See  Merchandise  account 
closed  and  ruled  on  page  38.) 

In  ruling  an  account,  draw  the  red  line  directly  on  the  blue  line.  In  the  double  ruling, 
draw  the  lines  as  close  as  ]iossible  and  not  have  them  run  together.  Rule  on  the  same  line 
on  both  sides  of  the  account,  even  if  there  be  a  larger  number  of  entries  upon  one  side  than 
on  the  other. 

The  two  entries  just  made  have  put  the  Ledger  out  of  balance,  and,  to  restore  the  balance, 
entries  for  like  amounts  must  be  made  on  the  opposite  sides,  as  follows:  First,  transfer  the 
Inventory  below  the  ruling  on  the  debit  side.  Write  in  black  ink.  Mar.  15,  Inventory,  332- 
Next  transfer  the  Gain  to  the  credit  side  of  the  Loss  &  Gain  account.  Write  in  black  ink, 
Mar.  15,  Mdse.,  262  (enter  in  page  column  the  page  of  Mdse.  account.)  By  these  two 
entries  we  have  not  only  placed  the  Ledger  again  in  balance,  but  we  have  caused  the  Loss  & 
Gain  account  to  show,  as  it  should,  on  the  credit  side,  the  gain  produced  by  an  account 
(Mdse.)  which  has  been  closed. 

Expense. — To  close  this  account,  on  the  smaller  side  —  which  is  the  credit — enter  the 
loss.  Write  in  red  ink.  Mar.  16,  Loss,  18.50.  (Enter  jiage  of  Loss  &  Gain  account.) 
Next,  rule  the  account.  (See  Model.)  Transfer  the  Loss  to  the  debit  side  of  Loss  &  Gain 
account.     Write  in  black  ink.  Mar.  15,  Expense,  IS. 50.     (Enter  page  of  Expense  account.) 

Loss  &  Gain. — Having  closed  all  the  accounts  which  show  Losses  and  Gains  into  the 
Loss  &  Gain  account,  you  will  now  proceed  to  close  this  account.  On  the  smaller  side, 
which  is  the  debit,  enter  the  difierence  between  the  sides,  that  is  the  Net  Gain.  Write  in 
red  ink,  Mar.  15,  Wni.  Wood  (the  page)  2^3.50.  Next  rule  and  foot  tlie  account.  Transfer 
the  Net  Gain  to  the  credit  side  of  Wm.  Wood's  account.  Write  in  black  ink.  Mar.  15,  Net 
Gain  (the  page)  2^3.50. 

Wm.  Wood's  Account. — Tlie  Net  Gain  having  been  carried  to  it,  this  account  now 
contains  the  Present  Cajiital,  and  that  it  may  be  shown  in  a  single  amount,  you  will  close 
the  account.  Proceed  as  follows:  On  the  smaller  side,  which  is  the  debit,  enter  the  differ- 
ence between  the  sides,  that  is  the  Present  Capital.  Write  in  red  ink.  Mar.  15,  Present 
Capital,  5168.50.  Next,  rule  and  foot  the  account.  Transfer  the  Present  Capital  to  the 
opposite  side  (credit  side)  below  the  ruling.  Write  in  black  ink.  Mar.  15,  Present  Capital, 
5168.50. 

This  completes  the  work  of  closing  the  accounts  which  contained  the  Losses  and  Gains 
growing  out  of  tlie  preceding  business,  and  the  Net  Gain  —  the  difference  between  the  Losses 
shown  on  the  debit  side  and  the  Gains  shown  on  the  credit  side  of  the  Loss  &  Gain  account  — 
has  been  entered  in  the  Proprietor's  account,  causing  it  to  show  the  Present  Capital.  It  is 
evident  that  the  Proprietor's  account  will  continue  to  show  its  true  relation  to  the  business — 
that  is,  the  Present  Capital,  or  exact  difference  between  the  Resources  and  Liabilities  —  only 
until  such  time  as  a  Gain  or  Loss  has  been  produced  in  the  course  of  trade;  because  such 
Gain  or  Loss  is  not  immediately  entered  in  the  Proprietor's  account,  but  it  is  permitted  to 
remain  in  the  account  producing  it  until  a  general  closing  of  the  accounts  showing  gains  or 
losses  is  made,  such  as  has  just  been  explained  and  illustrated. 


38 


OMICK    ROUTINE    AND    liOOKKKEPING. 


Submit  vonr  Model  Balance  Sheet  and  Model  Ledger,  just  closed,  for  inspection  and 
criticism. 

XoTE.— Ill  ciuie  your  work  in  closing  the  Model  Ledger  is  not  up  to  the  standard,  your  teacher  will 
require  you  to  make  an  Inventory  of  Hesources  and  Liabilities  and  a  Balance  Sheet  for  the  set  given  under 
Second  Posting  Exercise  on  page  8,  after  which  you  will  close  the  Ledger  and  submit  your  work  for 
approval.  The  Inventory  of  Jlercliandise  consists  of  the  following:  217  yds.  Broadcloth  @  4.25;  125 
yds.  Fancy  Ca-ss.  @  2.55;  120  yds.  Black  Cass.  @  2.40. 


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OFFICE    ROUTINE    AND    BOOKKEEPING.  39 

Directions  for  Takiiic;  Merchaiulise  Inventory.  You  will  now  proceed  to  take 
an  Inventory  of  the  goods  on  lumd  (in  Store  Room)  jn'cparatory  to  making  your  regular 
Balance  sheet  for  Jlr.  Hammond's  business.  The  current  cost  prices  of  your  commodities 
are  as  follows:  Apples  $1.50,  Potatoes  20^,  Barley  25'/-,  Eye  2S<I:,  Corn  30^,  Oats  24c(p,  Flour 
$3.75,  Wheat  G5^.  Do  the  work  on  a  journal  sheet  before  copying  into  your  regular  Journal, 
and  submit  it,  together  with  the  representative  merchandise,  to  your  teacher.  After  your 
work  is  approved,  copy  it  into  your  Journal.  Kefcr  to  the  Merchandise  Inventory  for  the 
Model  Set  while  doing  this  work. 

Directions  for  Taklnsr  Inventory  of  Resources  and  Liabilities.  Having  ascer- 
tained the  value  of  the  Merchandise  on  hand,  the  remainder  of  the  Resources  and  Liabilities 
you  will  determine  from  your  books  or  from  the  Trial  Balance.  Make  the  Inventory  of 
Resources  and  Liabilities,  using  the  one  given  for  the  Model  Set  as  a  guide.  The  differ- 
ence between  tlie  Resources  and  Liabilities  will  give  you  Mr.  Hammond's  worth  or  capital. 
Subtracting  his  Capital  on  commencing  from  the  Present  Capital  gives  the  Gain.  To 
ascertain  the  sources  of  Losses  and  Gains,  you  will  make  a  Balance  Sheet.  Before  doing 
so,  present  your  Inventory  for  apjiroval. 

Directions  for  Mailing  Balance  Sheet.  Head  a  blank  Balance  Sheet  as  follows: 
"C.  W.  Hammond's  Balance  Sheet,  Jan.  31,  189-."  2.  Copy  the  Trial  Balance  on  the 
Balance  Sheet,  following  the  directions  given  for  the  Model  Balance  Sheet.  (Keep  Model 
Balance  Sheet  before  you  while  doing  this  work.)  3.  Extend  the  balance  of  Cash  to  the 
Resource  column.  Why?  4.  Enter  the  Inventory  of  Merchandise  in  the  Resource  column 
iu  red  ink.  Ascertain  the  Gain  by  subtracting  the  debit  balance  from  the  value  of  the 
merchandise  on  hand.  Why  is  this  amount  a  Gain?  5.  Extend  the  total  of  Expense 
account  to  the  Loss  column.  Why?  G.  Extend  the  credit  balances  of  the  following  accounts 
to  the  Liability  column:  Redfield  &  Son,  Thos.  J.  Johnston  &  Co.,  Kaufman,  Straus  &  Co., 
Bills  Payable,  A.  Paul,  Jr.,  Barlow,  Henderson  Co.  Why  are  these  accounts  extended  to 
the  Liability  column?  7.  Extend  the  debit  balances  of  the  following  accounts  to  the 
Resource  column:  A.  P.  Batson,  Bills  Receivable,  Frey  &  Thomas,  H.  B.  Philips  &  Co., 
Harry  Powell.  Why  are  these  balances  extended  to  the  Resource  column?  8.  Rule  and 
foot  all  six  of  the  columns  as  shown  in  the  Model.  9.  Subtract  the  Loss  from  the  Gain  to 
find  the  Xet  Gain  and  extend  it  into  the  Loss  column  in  red  ink,  referring  to  the  Model  to 
make  sure  that  you  are  arranging  your  work  properly.  10.  To  the  Net  Credit  or  Capital 
on  commencing  of  Mr.  Hammond's  account  add  the  Net  Gain  and  extend  the  amount,  which. 
is  his  Present  Cajiital,  to  the  Liability  column.     Present  your  Balance  Sheet  for  approval. 

Directions  for  Closing  Acconnts  Showing  Losses  and  Gains.  0\k\x  an  account 
with  Loss  &  Gain  on  page  5  of  your  Ledger. 

Mp:rchandise  Account. —  1.  Enter  the  Merchandise  Inventory  as  shown  by  the  Inven- 
tory in  the  Balance  Sheet  on  the  credit  side  of  the  Merchandise  account  in  red  ink,  following 
the  directions  as  given  for  closing  the  Model  Ledger.  {See  page  37.)  2.  On  the  debit  side 
enter  in  red  ink  the  Gain,  which  is  the  difference  between  the  sides  including  the  Inventory, 
writing  it  as  follows:  "Jan.  31,  Gain,  5,"  and  the  amount.  3.  As  the  sides  of  the  account 
are  now  equal,  rule  and  foot  same  properly.  {See  Mdse.  Acct.,page  38.)  4.  Transfer  the 
Inventory  in  Mack  ink  to  the  debit  side  below  the  ruling.  5.  Transfer  the  Gain  to  the  credit 
side  of  Loss  &  Gain  account;  writing  iu  Mack  ink,  "Jan.  31,  Mdse.,  3,"  and  enter  the  amount 
in  the  money  column. 


40  OFFICE    ROUTINE    AND    BOOKKEEPING. 

Expense  Accorxr. —  1.  On  the  smaller  side  write  in  red  ink,  "Jan.  31,  Loss,  5,''  and 
the  amount  whicli  is  required  to  balance  the  account,  which  is  a  Loss.  2.  Rule  the  account 
as  shown  on  I'Jige  38.  3.  Transfer  in  black  ink  the  Loss  to  the  debit  side  of  the  Loss  &  Gain 
account  as  follcnvs:    "Jan.  31,  Expense,  4,  177.00." 

Loss  &  Gaix  Accocnt. — 1.  On  the  smaller  side  enter  the  difference  between  the  sides  in 
red  ink,  writinpf,  "Jan.  31,  C.  W.  ILimmond,  1,"  and  the  amount.  2.  Rule  and  foot  the 
account,  referring  to  the  Loss  &  Gain  account  on  page  38.  3.  Transfer  in  black  ink  the  Net 
Gain  to  the  credit  side  of  C.  W.  Hammond's  account,  writing  "Jan.  31,  Net  Gain,  5,"  and- 
the  amount. 

C.  W.  Hammond's  Account. — 1.  On  the  debit  side  write  in  red  ink,  "Jan.  SI,  Present 
Capital,"  and  tlie  amount.  2.  Rule  and  foot  tlie  account.  3.  Bring  down  the  Present 
Capital  in  black  ink  to  the  credit  side  below  the  ruling. 

Having  finished  closing  the  accounts  that  show  Losses  and  Gains,  check  their  balances  as 
shown  in  tlic  Ledger  with  those  sliown  in  the  Resource  and  Liability  columns  of  tiie  Balance 
Sheet  to  see  that  you  liave  made  no  errors  in  closing. 

Present  all  your  books  for  iii.-!]H'ction. 

While  your  teacher  is  examining  your  books  prepare  yourself  for  an  examination  upon 
the  leading  principles  involved  in  the  work  of  the  foregoing  pages.  The  following  questions 
will  aid  you  materially  in  this. 

Questions  for  Review. — What  is  bookkeeping?  What  is  the  object  in  keeping  books? 
What  is  double  entry  bookkeeping?  Define  the  Day  Book-Journal.  The  Ledger.  AVliat  is  a 
debit?  A  Credit?  Wliat  is  an  account?  What  is  Journalizing?  Posting?  Give  the  general 
rales  or  principles  for  debiting  and  crediting.  What  is  the  object  in  taking  a  Trial  Balance? 
Why  is  it  a  good  plan  to  check  over  your  postings  before  taking  a  Trial  Balance?  Why  is  it 
a  better  plan  to  take  a  Trial  Balance,  using  the  balances  instead  of  the  footings?  In  case 
your  balance  would  not  prove  wlien  you  used  the  balances,  would  you  try  to  get  it  by  using 
the  footings?  Give  your  reasons  for  your  answer.  What  is  a  Balance  Sheet?  What  is 
the  object  of  making  a  Balance  Sheet?  Wiiat  is  a  Merchandise  Inventory?  How  is  the 
Merchandise  Inventory  ascertained?  What  is  an  Inventory  of  Resources  and  Liabilities? 
What  does  the  difference  between  the  total  Resources  and  Liabilities  show?  When  does  an 
account  show  a  Loss?  A  Gain?  A  Resource?  A  Liability?  How  is  the  Net  Gain  found? 
When  would  there  be  a  Net  Loss?  How  is  the  Present  Caiiital  determined?  What  is  the 
next  step  after  the  Present  Capital  has  been  found?  Why  are  the  Loss  and  the  Gain  accounts 
in  the  Ledger  closed?  Into  what  account  are  they  closed?  Into  what  account  is  Loss  & 
Gain  account  closed?    Review  all  the  questions  given  under  the  accounts  previously  presented. 


OFFICE    ROUTINE    AND    BOOKKEEPING.  41 

February  1,  189- 

€oiitiiiuatiou  of  Mr.  Haiuiuoiurs  business.  The  lunount  of  business  transacted, 
tlie  pnitits  arising  therefrom,  and  tlic  success  of  the  business  generally,  has  induced  Mr. 
Hammond  to  employ  Mr.  Frank  Winter  as  salesman  and  I'eceiviug  clerk,  leaving  you  to 
devote  your  entire  time  to  the  books  and  office  work.  Mr.  Winter  will  attend  to  the  ship- 
ping and  the  receiving  of  all  goods,  0.  K.  bills,  and  sell  to  customers  who  buy  at  retail. 
Mr.  Hammond,  as  heretofore,  will  attend  to  the  soliciting  of  orders,  make  the  purchases, 
and  attend  to  the  financial  matters  pertaining  to  the  business.  Mr.  Winter  will  take  charge 
of  the  stock  as  shown  by  your  Inventory,  and  you  will  have  nothing  whatever  to  do  with  the 
handling  of  goods.  Never  enter  an  oi-der  or  bill  unless  it  has  been  0.  K.'d  either  by  Mr. 
Hammond  or  Mr.  Winter. 

The  Cash  Book  is  now  introduced  as  the  first  of  labor-saving  books.  It  is  generally 
considered  a  subdivision  of  the  Day  Book,  and  takes  the  place  of  the  Cash  account  in  the 
Ledger.  All  cash  entries  are  to  be  recorded  in  this  book  and  posted  directly  to  the  Ledger 
without  being  carried  to  the  Journal.     {Seepages  Ji2  and  iS.) 

The  Method.  Whenever  cash  is  received,  the  amount  is  entered  on  the  left  or  debit  side 
(page)  of  the  Cash  Book,  with  the  title  of  the  account  to  be  credited  in  posting,  and  an  appro- 
priate explanation.  Whenever  cash  is  paid  out,  the  amount  is  entered  on  the  right  or  credit 
side  (page)  of  the  Cash  Book,  with  the  title  of  the  account  to  be  debited  in  posting,  and  an 
appropriate  explanation.  The  difference  between  the  sides  of  the  Cash  Book  should  exhibit, 
at  any  time,  the  cash  on  hand.  In  business  it  is  customary  to  prove  cash  every  day;  i.  e., 
ascertain  whether  the  cash  on  hand  agrees  with  the  balance  as  shown  by  the  Cash  Book. 
The  Cash  Book  is  ruled  daily,  weekly,  or  monthly,  usually  the  latter.  The  Cash  Book  is  a 
great  convenience  in  proving  cash,  as  proving  it  when  the  casii  entries  are  made  in  the 
Journal  could  be  accomplished  only  with  difficulty,  because  it  would  be  necessary  to  collect 
the  debit  items  and  the  credit  items  before  their  difference  could  be  ascertained. 

Model  Cash  Book.  Carefully  study  the  Model  Cash  Book  illustrated  on  pages  43  and 
43,  make  a  transcript  of  it,  and  post  same  to  a  Ledger,  on  a  sheet  of  ledger  paper,  referring 
to  Ledger  on  pages  42  and  43,  after  which  take  a  Trial  Balance  to  test  the  correctness 
of  the  posting.  You  will  observe  that  the  items  appearing  on  the  debit  side  of  the  Cash 
Book  are  posted  to  the  credit  of  the  ledger  accounts;  also,  that  the  items  appearing  on  the 
credit  side  of  the  Cash  Book  are  posted  to  the  debit  side  of  the  Ledger.  Excepting  the 
amounts,  the  transactions  recorded  in  the  Model  Cash  Book  are  identical  with  the  cash 
transactions  recorded  in  the  Day  Book-Journal  for  January.  Compare  tlie  Model  Cash  Book 
with  the  cash  transactions  recorded  in  the  Day  Book-Journal  to  learn  why  the  cash  book 
items  are  posted  to  the  opposite  sides  of  the  ledger  accounts.  As  no  account  of  Cash  is 
kept  in  the  Ledger,  the  Cash  Book,  in  which  all  receipts  and  payments  of  cash  are  recorded, 
is  to  be  considered  as  the  Cash  account  in  the  Ledger,  and  in  taking  a  Trial  Balance  start 
by  bringing  the  receipts  and  payments  of  Cash,  or  the  balance  on  hand,  to  the  Trial  Balance, 
just  as  you  would  were  the  account  kept  in  the  Ledger.  Then  proceed  as  previously  instructed 
with  all  other  accounts  in  the  Ledger.  The  Ledger  of  itself  will  not  balance  wlien  it  does 
not  contain  the  Cash  account,  so  always  get  the  balance  on  hand  from  the  Cash  Book,  which, 
as  before  stated,  takes  the  jilace  of  the  Cash  account  in  the  Ledger.  Submit  your  work  to 
the  teacher.     (Continued  on  page  44.) 


42 


OFFICE    ROUTINE    AM)    HOOK  KEEPING. 


.-.^r'-v->Z-->>  7  tP'V^Z-, 


^e 


/^^( 


,y . 


-^v. 


Jan.    29   C. 


■^   <£-<?-e'**Ti<i^-<!!<S-«^ 


^i,OC^^ 


C.  W.  Hammond 


100 


IS9-. 
Jan.  I    1    C. 


p'i'^a 


=  r(?^e 


j/f^ 


j-j- 


5000 


Merchandise. 


1XI-. 

1S9-. 

Jan. 

1 

C. 

•JOO 

1 

Jan. 

1 

C. 

324 

1 

c. 

720 

3 

C. 

TfiG 

1 

c. 

500 

1 
1 

Expense. 


JaD. 

2 

2 

31 

31 

C. 
C. 
C. 
C. 

17 
90 
50 
15 

75 

A.   P.   Bat.so.n. 


189-. 

Jan. 


8    C. 


200 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


43 


/^ 


(r<^^;^^t--<:..-d^..---p^-g'-zr-;^^ 


3  <P  <:> 

J  IP  e 

/   iP  c 


/^' 


J^^^- 


y  <:>  i/^a 


*To  be  written  in  red  ink. 


Redfi?;ld  &  Sox. 


189-. 
Jan. 

9 

C. 

300 

Frey  &  Thomas. 

189- . 
Jan. 

10 

C. 

600 

! 

11.  Knefely  &  Son. 

18^. 
Jan. 

17 

C. 

250 

11.  ]'>.  Phillips  &  Co. 

189-. 
Jan. 

20 

C. 

150 

A.  Paul,  Ju. 

I89-. 
Jan. 

22 

C. 

300 

44 


OKFICE    ROUTINE    AND    BOOKKEEPING. 


Havi)ig  luul  your  work  a])provecl,  you  will  now  balance  the  Cash  account  in  the  Ledger 
in  red  ink.  writing  on  the  smaller  side,  "  Feb.  1,  Balance  to  C.  B.,"  and  the  amount.  Rule 
the  account  and  bring  the  balance  to  the  debit  side  (left-hand  page)  of  your  journal  sheet 
representing  the  Cash  Book,  writing  in  black  ink,  "Feb.  1,  Balance  on  hand,"  and  place 
the  amount  in  the  column  nearest  tlie  center  of  the  ]k\^c.  Write  the  word  Ca^h  on  the  top 
line  of  each  page  as  you  find  it  in  the  ^[odel  Cash  Book. 

Call  for  your  Pass  Book  at  the  bank  if  you  have  not  already  received  it.  Compare  the 
balance  in  the  Pass  Book  witli  the  balance  in  tlie  Check  Book,  and  if  found  to  agree,  write 
in  red  ink  "0.  K.  with  Bank  Jialance  "  opposite  the  balance  in  the  Check  Book.  If  there 
is  a  discrepancy,  compare  the  checks  returned  by  the  bank  with  the  amounts  shown  by  the 
stubs  to  locate  the  error.     If  you  fail  to  locate  the  discrepancy,  consult  the  teacher. 

Carefully  file  away  the  checks  returned  by  the  bank  on  tlie  Voucher  File.  Remember 
that  no  receipts  w-ere  taken  when  payments  were  made  by  check,  therefore  you  will  ])reserve 
these  checks  as  evidences  of  jiaymeut.  A  check  paid  by  the  bank  and  returned  to  the 
depositor  is  tlie  best  kind  of  receipt,  and  should,  tlierefore,  be  carefully  j)reserved. 

No.  38. —  Proprietok's  Addition.\l  Investment.  Mr.  Hammond  wishes  to  make  an 
additional  investment.  Your  teacher  Avill  hand  you  the  amount  your  price  list  calls  for  in 
the  following  table.     A])ply  for  same  and  count  tlie  cash  carefully. 

AUDITIOXAL    AmOUNT.S   TO    BE    INVESTED. 


No.  of 

1 

Price  List. 

1 

2 

3 

4 

5 

6 

i 

8    9 

10 

11 

12 

13 

Amount. 

5000 

5800 

3600 

5600 

6000 

4900 

5500 

5100 

4300 

5700 

4200 

4800 

5900 

14 

15 

IG 

17 

18 

19 

20 

1 
21    22 

23 

24 

25 

5200 

4500 

3900 

5400 

4600 

3700 

4400 

5300 

4000 

3800 

4100 

4700 

What  aci-ouiii  liii.s  icceived  value!'     (Jt'uleS.)     What  account  has  supplied  value?     {Rule 9.) 
Excepting  the  amount,  make  the  entry  as  follows  on  the  debit  side  of  the  Cash  Book: 


d^^^c^. 


^  o  < 


By  this  entry,  Cash  is  debited  and  Mr.  Hammond  is  credited.  While  tlie  form  varies,  this 
entry  does  not  differ  in  effect  from  the  entry  to  be  made  in  the  Journal,  in  case  there  were 
no  Cash  Book  kept.  Give  the  reasons  mentally  for  the  debit  and  credit.  [Ihilcs  1  and  2.) 
Recount  the  cash  and  place  it  in  tiie  ])roper  receptacle. 

No.  39.— Gas  Bill  rou  January  Paid.  Read  this  bill.  No.  39,  carefully.  ^\v.  Ham- 
mond wislies  you  to  ])ay  it  to-day  to  take  advantage  of  the  discount  allowed  when  jiayiuent 
is  made  on  tlie  first  day  of  the  month.  Write  the  check  for  the  net  amount,  first  filling  the 
stub  projierly,  ami  deduct  the  amount  from  the  balance  in  the  bank.  File  the  bill  on  the 
Voucher  l-'ilc  and  j)laeo  cheek  in  proper  recejitacle.  Determine  the  account  to  be  credited 
by  reading  rule  4;  the  account  to  be  debited  by  reading  rule  13.  Make  the  entry  from  the 
stub  of  the  Check  Book  on  the  credit  side  of  the  Cash  Book  as  follows: 


OFFICE    ROUTINE    AND    BOOKKEEPING.  45 


'^  ^r 


Give  the  reasons  mentally  for  the  debit  and  the  credit. 

No.  40. — Kext  for  February  Paid.  Pay  the  rent  for  the  current  month  by  check. 
Write  the  check,  first  filling  the  stub  jirojierly  and  deducting  the  amount  from  the  previous 
balance.  Examine  your  check  carefully  to  see  that  you  have  made  no  errors.  Tear  it  out 
and  place  it  in  the  proper  receptacle.  No  receipt  is  necessary.  Why  not?  What  account 
is  to  be  debited?  {Rule  13.)  What  account  is  to  be  credited?  {Ruh  i.)  Make  the  entry 
from  the  stub  of  the  check  book  on  the  credit  side  of  the  Cash  Book.  Why?  Have  you 
written  the  proper  explanation? 

No.  41. —  Sale  on"  Account.  Make  out  the  bill  for  this  order  (No.  41).  Place  the 
terms  (15  das.)  asked  for  on  your  bill.  Re-calculate  the  items  to  see  that  you  have  made  no 
errors.  Note  the  check  marks  to  the  left  of  the  items,  and  Mr.  Winter's  initials  under  the 
word  "  Filled;"  these  indicate  that  the  order  has  been  filled  and  the  goods  sent.  In  making 
this  entry  apply  the  General  Rules.  Make  the  entry  in  tlie  Journal,  using  a  journal  sheet 
for  that  juirjiose.  Place  the  bill  in  the  proper  receptacle  and  file  the  order  as  previously 
instructed. 

No.  4tJ. — Purchase  ok  Account.  Examine  carefully  bill  No.  42  and  go  over  the  calcu- 
lations. Note  that  the  items  have  been  checked  off"  by  Mr.  Winter,  which  indicates  tliat  all 
the  goods  called  for  have  been  received  by  him.  Mr.  Hammond's  0.  K.  and  check  marks 
opposite  the  prices  indicate  as  usual  that  the  prices  charged  are  satisfactory  to  him.  He 
does  not  examine  the  extensions  and  additions  of  the  bills;  that  is  the  duty  of  the  book- 
keeper. You  will  0.  K.  the  bill  as  usual  if  the  calculations  prove  to  be  correct.  Apply  the 
General  Rules  for  debiting  and  crediting,  and  make  the  entry  in  the  Journal.  File  tlie  bill 
properly. 

No.  43. — Sale  on  Account.  Bill  the  goods  called  for  in  this  order  (No.  43).  Go 
over  your  calculations  a  second  time.  Mr.  Winter's  check  marks  and  initials  under  "  Filled  " 
indicate  that  the  goods  have  been  sent.  Never  make  out  a  bill  for  an  order  that  is  not 
checked  off,  as  that  clearly  indicates  that  it  has  not  been  filled.  Apply  the  General  Rules 
for  debiting  and  crediting  and  make  the  entry  in  the  Journal.  Place  the  bill  in  the  proper 
receptacle  and  file  the  order. 

February  2,  ISO- 
No.  44. — Purchase  on  Account.  Examine  this  bill,  verify  the  calculations  and  0.  K. 
it.  Are  the  items  checked  off  in  the  vertical  column  to  tlie  left  of  the  items,  and  has  it 
been  0.  K.'d  to  show  that  the  prices  are  correct  and  all  the  goods  have  been  received?  Never 
enter  a  bill  that  is  not  checked  off  and  0.  K.'d,  as  there  is  nothing  to  indicate  that  the  goods 
have  been  received,  as  two  or  more  bills  may  be  sent  for  the  same  lot  of  goods,  or  the  bill 
sent  and  the  goods  not  delivered  by  oversight.  Were  you  to  credit  the  parties  for  every  bill 
sent,  you  would  very  likely  pay  out  money  for  goods  that  were  not  received.  Apply  the 
Oeneral  Rules  for  debiting  and  crediting  and  make  the  entry  in  the  proper  book.  File  the 
bill. 


46  OFFICE    ROUTINE    AND    BOOKKEEPING. 

No.  45. —  Cash  Rkceived  os  Account.  This  check  is  in  part  jiayment  of  bill  sold 
on  the  lirst  inst.  What  has  been  received?  Who  supplied  it?  Note  the  indorsement  ou 
the  back.  The  indorser  is  the  one  who  supplied  value  to  the  business.  Apply  the  General 
Rules  for  debiting  and  crediting  and  make  the  entry  on  the  debit  side  of  the  Cash  Book  as 
follows:  "2,  T.  A.  Cooke,  on  acct.,"  and  the  amount.  Why  is  this  entry  made  on  the 
debit  side  of  the  Cash  Book?    Place  the  check  in  the  Cash  Drawer. 

No.  46. — Cash  Received  in  Full  of  Accoukt.  Check  No.  46  is  in  full  payment 
of  balance  due  by  the  party  who  sends  the  check.  Refer  to  his  account  in  your  Ledger  and 
see  if  the  amount  named  in  the  check  is  the  amount  required  to  balance  the  account.  Report 
to  your  teacher  if  you  find  that  there  is  a  discrepancy.  What  account  has  received  value? 
(RiileS.)  What  account  has  supplied  it?  {Rule  16.)  Explanation  excepted,  this  entry  is 
similar  to  tlie  entry  for  No.  45.     The  explanation  should  read  "  in  full  of  acct."     Place  the 

check  in  the  proper  receptacle. 

February  3,  189-. 

jJo.  47. — Deposit.  You  will  now  make  a  deposit.  Count  the  currency  in  your  Cash 
Drawer,  fill  out  a  dci>osit  ticket,  entering  the  amount  opposite  the  word  "Currency."  Indorse 
the  checks  as  instructed  on  page^isi,  and  enter  each  separately  where  indicated  on  the  deposit 
ticket.  Foot  the  items,  then  carefully  recount  your  currency  and  checks  and  re-add  the 
items  to  make  certain  that  there  is  no  error.  Enter  the  total  amount  of  your  deposit  on  the 
right-hand  stub  of  your  Check  Book  and  add  it  to  the  last  balance.  On  the  left-hand  stub 
make  a  copy  of  the  items  (names  and  amounts)  on  your  deposit  ticket,  so  that  reference  can 
be  made  to  them  when  desired.     Take  your  deposit  together  with  your  Pass  Book  to  the  bank. 

Xo.  48. — Cash  Paid  ox  Account.  Pay  Thos.  J.  Johnston  &  Co.  by  check  $750  to 
apply  on  account.  First  fill  the  stub,  deduct  the  amount  from  the  previous  balance,  then 
write  the  check.  Examine  it  carefully  to  see  that  you  have  made  no  nustake.  Place  it  in 
the  proper  receptacle.  Who  has  received  value?  What  account  has  supplied  it?  Make  the 
entry  on  the  right-hand  side  of  the  Cash  Book  as  follows:  "3,  Thos.  J.  Johnston  &  Co., 
on  acct.,  750."  Give  the  reasons  mentally  for  the  debit  and  credit.  Why  is  this  entry  made 
on  the  credit  side  of  the  Cash  Book  ? 

Febkuaky  4,  189-. 
No.  49. — Cash  Paid  in  Full  of  Account.  Turn  to  Barlow,  Henderson  Co.'s  acct. 
in  your  Ledger  and  ascertain  the  amount  the  business  owes  them.  Fill  the  s'aib  of  the  Check 
Book,  deduct  the  amount,  then  write  the  check  for  the  balance  due  them.  Examine  it  care- 
fully to  sec  that  it  is  correct,  then  i)lacc  it  in  the  proper  receptacle.  Who  has  received  value? 
What  account  has  supplied  it?  Make  the  entry  on  the  credit  side  of  the  Cash  Book,  similar 
to  the  entry  for  No.  48.  The  explanation  should  read  "  in  full  of  acct."  Why  is  this  entry 
made  on  the  credit  side  of  the  Cash  Book? 

No.  50. — Purchase  on  Account.  Examine  this  bill  to  see  if  all  of  the  goods  have 
been  received.  How  can  you  tell?  Are  the  prices  correct?  Go  over  the  calculations  of  the 
bill  and  if  found  correct  0.  K.  it  as  per  j)revious  instructions.  Make  the  entry  in  the  Journal, 
applying  the  General  Rules  for  debiting  and  crediting.     File  the  bill  properly. 

Provinir  Casli.  In  small  pencil  figures,  foot  the  sides  of  your  Cash  Book.  Deter- 
mine the  balance  t»y  subtracting  the  credit  from  the  debit  footing.  See  if  this  balance  agrees 
with  the  amount  on  hand,  iis  shown  by  the  check  book  stub,  plus  the  amount  in  the  Cash 
Drawer.     Always  exercise  the  utmost  care  in  proving  Cash  so  as  not  to  make  an  error. 


OFFICE    ROUTINE    AND    liOOK KEEPING.  47 

Fourth  Report.  Fill  a  rcjiort  blank  jiropcrly  and  hand  it  together  with  the  vouchers 
and  cash  for  others  to  your  teacher.  Have  your  cash  book  and  Journal  sheets  examined 
and  approved.  Copy  them  into  your  regular  Cash  Book  and  Journal.  Re-write  any  of  the 
Touchers  that  your  teacher  may  reject  on  account  of  errors  or  poor  appearance  of  work. 

Posting.  Open  an  account  with  T.  A.  Cooke,  Cor.  8th  &  Market  Sts.,  City,  on  the 
15th  line  of  page  10  of  the  Ledger;  on  page  16  open  an  account  with  Ballard  &  Ballard 
Co.,  Cor.  10th  &  JEain  Sts.,  City;  on  the  30th  line  of  page  10,  with  J.  E.  Grimm,  948  State 
St.,  City;  on  the  lltli  line  of  page  16  with  J.  J.  Disosway  &  Co.,  City.  Post  the  items  in  the 
Day  Book-Journal  to  tlie  Ledger  as  previously  instructed,  and  place  the  letter  "J"  in  the 
explanation  column  of  the  Lodger  accounts  with  all  items  posted  from  the  Journal,  to  distin- 
guish them  from  those  to  be  posted  from  the  Cash  Book.  Post  your  Cash  Book  next,  making 
certain  that  you  carry  the  items  on  the  debit  side  to  the  credit  side  of  the  Ledger  and  the 
credit  items  to  the  debit  side  of  the  Ledger,  Place  tlie  letter  "  C  "  in  the  exjilanation  column 
of  the  ledger  accounts  with  all  items  that  are  posted  from  the  Cash  Book,  to  distinguish  them 
from  those  that  are  posted  from  the  Journal.  Check  over  your  posting  carefully  to  make 
sui"e  that  you  liave  made  no  errors.  Present  your  Ledger,  Journal  and  Cash  Book  for  inspec- 
tion.    If  your  work  meets  with  ajiproval  you  will  proceed  with  the  following  transactions. 

February  5,  189-. 

No.  51. — Cash  Sales,  Retail  Department.  This  cash  Mr.  Winter  turns  over  to  you 
as  the  amount  received  from  cash  sales  for  the  week  in  the  retail  department.  Count  it 
carefully.  What  account  receives  value?  {Rule  S.)  What  account  sujiplies  it?  {Rule  12.) 
Make  the  entry  on  the  debit  side  of  the  Cash  Book,  writing  "Feb.  5,  Mdse.,  retail  sales, 
50.25."     Place  the  cash  in  the  Cash  Drawer. 

No.  52. — Sale  on"  Account.  Examine  this  order  to  see  if  it  has  been  filled.  Make 
out  the  bill.  Rc-calculate  the  items  of  the  bill.  Apply  the  General  Rules  for  debiting  and 
crediting  and  make  the  entry.     Place  the  bill  in  the  proper  recei^tacle  and  tile  the  order. 

No.  53. —  Cash  Received  on  Account.  This  check  is  to  apply  on  account.  AVhat 
account  has  received  value?  What  account  has  supplied  it?  Make  the  proper  entry  in  the 
Cash  Book.  On  which  side  is  the  entry  made?  Why?  Place  the  check  in  the  proper 
receptacle. 

February  G,  189-. 

No.  54. — Deposit.  Make  a  deposit  of  all  currency  and  checks  on  hand,  following  instruc- 
tions for  No.  47.     Have  you  made  a  detailed  record  on  the  left-hand  stub  of  the  Check  Book? 

No.  55. — Cash  Paid  in  Full  of  Account.  Turn  to  Thos.  J.  Johnston  &  Co.'s  account 
in  the  Ledger  and  ascertain  the  amount  the  business  owes  them.  Take  your  Check  Book,  fill 
the  stub,  deduct  the  amount  from  the  last  balance  and  write  the  check.  Carefully  examine 
it  and  place  it  in  the  proper  receptacle.  Apply  the  General  Rules  for  debiting  and  crediting, 
and  make  the  entry  similar  to  the  entry  for  No.  49.  Why  is  this  entry  made  on  the  credit 
side  of  the  Cash  Book? 

February  7,  I89-. 

No.  56. — Note  Received  on  Account.  This  note  is  to  apply  on  account.  Examine 
it  carefully.  Apply  General  Rules  and  make  the  entry.  Place  the  note  in  the  Cash  Drawer. 
Is  a  note  cash? 


48  OFFICE    ROUTINE    AND    BOOKKEEPING. 

Febucaky  9,  1S9-. 

No.  57. — Cash  Received  fok  Note  Due  To-Day.  This  check  is  in  payment  of  note 
due  to-diiy.     You  will  find  the  note  in  the  Cash  Drawer.     Cancel  the  note  by  writing  "  Paid, 

Feb.  9,  189-,  C.  "W.  Uammond,  .(yoMr.Mra?) ^  Attorney,"  across  the  face,  and 

place  it  in  Vouchers  for  Others,  from  where  it  will  be  delivered  to  Mr.  Batson,  who  will  bold 

it  as  a  receipt. 

Febkiahy   11.  1S9-. 

No.  58. — Note  Ciivex  ox  Account.  ^Vrite  a  note  at  60  days  for  $825,  favor  Ballard 
&  Ballard  Co.,  payable  at  City  Bank,  to  apply  on  account.  Notes  made  payable  at  the  bank 
will  be  ])aid  out  of  C.  AV.  Hammond's  deposit  when  due,  the  same  as  a  check.  Examine  it 
very  carefully.  AVliat  account  is  to  be  debited?  (Rule  15.)  Credited?  {Rule  20.)  Make 
the  proper  entry,  being  careful  to  give  the  correct  explanation.  Place  the  note  in  the  proper 
receptacle. 

No.  59.— Cash  Paid  ix  Full  or  Account.  Consult  Redtield  &  Son's  account  in  the 
Ledger  and  ascertain  the  amount  the  business  owes  them.  In  your  Check  Book  All  the  stub, 
deduct  the  amount  and  write  the  check  for  the  balance  due  tlieni.  Carefully  examine  it  and 
place  it  in  the  proper  receptacle.  Make  the  entry  from  the  stub,  applying  the  General  Kules. 
This  entry  is  similar  to  entries  for  Nos.  49  and  55. 

Febkuaky  Vi,  1S9-. 

No.  60. —  Cash  Sales,  Retail  Dkpartmext.  Mr.  Winter  turns  over  to  you  the  cash 
received  from  sales  at  retail.  Count  it  carefully.  This  entry  is  similar  to  entry  for  No.  51. 
Where  will  you  jilace  the  cash? 

No.  61. — Deposit.  Deposit  all  the  cash  in  the  Cash  Drawer,  observing  instructions  in 
detail  as  given  for  No.  47.     Be  sure  that  you  omit  nothing. 

Febriaky  13,  189-. 

No.  62. — Sale  ox  Accouxt.  Order  No.  62  has  been  filled.  Make  out  the  bill,  placing 
the  terms,  "20  das.,"  where  indicated.  Go  over  the  extensions  and  addition.  Applv  the 
rules  and  make  the  entry.     Place  the  bill  in  the  proper  receptacle.     File  the  order. 

No.  63. — Note  Due  To-Day  Paid  by  Check.  Kaufman,  Straus  &  Co.  have  left  their 
note  due  to-day  with  your  teacher  for  collection.  Fill  the  stub  i)roperly,  deduct  the  amount, 
and  write  the  check,  making  it  payable  to  Kaufman,  Straus  &  Co.  Take  the  check  to  the 
teacher  and  get  him  to  cancel  the  note.  File  the  note  as  a  receipt.  Make  the  entry  from  the 
stub  of  the  Check  Book.     Debit — rule  10 ;  credit — rule  4-     I'l  what  book  is  the  entry  made? 

Febiuaky    14,  1S9-. 

No.  64.  —  Note  Received  ox  Account.  This  note  is  in  part  payment  of  what  the 
maker  owes  the  business.  Carefully  examine  it.  Make  the  entry,  applying  the  General 
Rules.     Place  the  note  in  the  Cash  Drawer. 

I'rovin!^  Cash.  Add  the  sides  of  your  cash  book  sheet  in  neat  pencil  figures  and  iiscer- 
tain  whether  the  balance  agrees  with  the  amount  on  hand  (in  the  bank).  If  found  to  agree, 
balance,  rule  (in  red  ink)  and  foot  the  Cash  Book  as  shown  in  the  Model  on  pages  42  and  43. 
Bring  the  balance  down  below  the  ruling  in  black  ink. 


OFFICE    ROUTINE    AND    BOOKKEEPING.  49 

Fifth  Report.  Make  a  report  on  a  report  blank  and  hand  same  to  your  teacher,  together 
with  your  casli  and  Touchers  for  others.  Rewrite  all  vouchers  that  do  not  meet  with  approval. 
Submit  your  cash  book  and  day  book-Journal  sheets  for  inspection  and  approval.  Copy 
tiicm  into  your  regular  Casli  Book  and  Day  Book-Journal,  then  balance  and  rule  the  Cash 
Book.     In  doing  this,  observe  any  suggestions  your  teacher  made  while  examining  your  work. 

Posting.  Post  all  items  from  the  Day  Book-Journal  to  the  Ledger,  as  previously 
instructed,  placing  the  letter  "J"  in  the  explanation  column.  Post  from  the  Cash  Book, 
using  the  letter  "C"  as  explanation  to  indicate  that  the  items  came  from  the  Cash  Book. 
Be  sure  to  post  the  items  on  the  debit  side  of  the  Cash  Book  to  the  credit  of  the  proper 
accounts  in  the  Ledger;  also  post  the  items  on  the  credit  side  to  the  debit  of  the  ledger 
accounts.  Do  you  clearly  comprehend  why  this  is  done?  After  the  posting  is  completed, 
check  over  your  work  as  you  have  been  previously  instructed. 

Trial  IJalauce.  As  the  Cash  Book  takes  the  place  of  a  part  of  your  Ledger — the 
Cash  account  —  it  will  be  necessary  to  treat  it  as  you  would  the  Cash  account  in  taking  a 
Trial  Balance.  On  a  journal  sheet  start  your  Trial  Balance  with  Cash,  bringing  in  the 
balance  as  shown  by  the  Cash  Book.  Proceed  as  previously  instructed  with  all  accounts  in 
the  Ledger  that  do  not  balance.  Foot  the  sides.  When  found  to  be  equal,  submit  your 
Trial  Balance  to  your  teacher  for  approval.  Never  ask  anyone  to  assist  you  in  finding  errors 
in  your  trial  balances  until  you  have  made  every  effort  to  find  them  yourself. 

Errors  in  Trial  Balances.  Much  time  is  spent  in  correcting  errors  that  are  due,  not 
to  a  lack  of  knowledge  of  the  work  in  hand,  but  simply  to  lack  of  care.  A  bookkeeper  must 
learn  to  find  mistakes,  although  a  constant  effort  should  be  made  to  avoid  them.  If  the 
Trial  Balance  does  not  at  first  balance,  he  sliould  not  be  discouraged,  for  a  systematic  search 
will  always  disclose  the  error.  The  instructions  given  below  should  be  followed  explicitly 
and  in  the  order  given.  Poor  figures  cause  many  of  the  errors  in  bookkeeping.  Errors  may 
be  made  because  figures  are  improperly  formed,  and  therefore  are  misread;  figures  may  not 
be  written  in  columns,  thus  causing  mistakes  m  addition;  or  corrections  may  be  carelessly 
made,  rendering  the  figures  illegible.  A  good  bookkeeper  will  make  good  figures.  The 
acquiring  of  a  habit  of  accuracy  is  one  of  the  valuable  things  that  bookkeeping  teaches,  and 
a  constant  effort  should  be  made  to  improve  in  this  particular.  A  permanent  record  of 
errors,  kept  ])erha])S  on  one  of  the  fly  leaves  of  a  text-book,  will  be  of  value  in  showing 
what  errors  you  are  most  liable  to  make,  and  thus  enable  you  to  guard  against  them. 

To  Find  Errors  when  the  Trial  Balance  Does  Not  Balance. 

First. — Review  carefully  the  addition  of  the  Trial  Balance. 

Second. — Find  the  exact  amount  out  of  balance.  Look  for  this  amount  in  the  Journal, 
and  in  all  other  books  from  which  posting  is  done;  also,  look  for  one-half  the  amount,  and 
see  if  such  amounts  are  posted  correctly. 

Third. — Review  the  additions  of  the  Ledger  accounts,  and  see  if  all  footings  have  been 
transferred  correctly  from  Ledger  to  Trial  Balance. 

Fourth. — See  if  all  previous  balances  and  inventories  have  been  brought  down  below  the 
rulings  on  the  proper  side. 

Fifth. — See  that  no  amount  has  been  entered  on  the  wrong  side,  omitted,  or  entered  twice 
in  the  Trial  Balance. 

Sixth. — Check  the  posting  in  the  order  of  dates,  beginning  at  date  of  last  Trial  Balance, 
as  follows: 

(a)  See  that  the  Journal  entries  of  each  transaction  balance; 


50  Ol-l-lCE    KUUTINE   AND    H(  >OK  ki:p:i'ING. 

(b)  Check  eacli  entry  in  Ledger,  in  tlie  order  of  iiriginiil  i)()sting,  as  found  to  hv  correct. 
Place  11  check  mark  in  pencil,  thus,  y/,  in  the  Ledger  against  each  item  examined  and  found 
to  be  correctly  posted.  (Sharpen  your  pencil  and  make  very  small,  light  check  marks  that 
may  afterwards  be  erased.)  Isevcr  rerieio  the  posting  without  checking  in  the  Ledger.  The 
l)robable  location  of  an  error  may  frec|ucntly  be  determined  by  its  amount.  An  error  of 
several  thousand  dollars  could  only  be  in  accounts  containing  large  amounts,  or  a  balance 
j)laced  on  the  wrong  side,  or  the  omission  of  an  account.  An  error  of  only  a. few  cents  is 
likely  to  be  in  Interest  or  Discount,  or  the  omission  of  the  cents  in  posting  some  account.  If 
the  amount  out  of  balance  is  exactly  1.00,  10.00,  100.00,  1000.00,  etc..  the  error  is  usually 
in  addition.  If  the  amount  out  of  balance  is  divisible  by  nine,  the  error  may  be  a  transpo- 
sition of  figures. 

In  case  it  becomes  necessary  to  review  and  check  the  jiosting,  and  an  error  is  found  in 
this  process,  but  which  is  not  the  amount  required  to  make  the  trial  balance  prove,  correct 
the  error  thus  discovered;  then  find  the  exact  amount  still  required  to  make  the  Ledger 
balance,  and  again  apply  the  sliort  tests  given  above  l)efore  going  on  with  the  examination 
of  the  posting.     Continue  in  this  way  until  the  Trial  ]5alance  balances. 

Correction  of  Krrors.  The  manner  of  correcting  an  error  depends  wyon  the  nature 
of  it,  and  upon  the  book  in  which  it  apjiears.  As  a  rule,  erasures  should  not  be  made  in 
any  of  the  books,  and  i)articularly  in  the  books  of  original  entry. 

In  case  of  an  error,  consult  the  teacher  for  instructions  regarding  its  correction. 

When  your  Trial  IJalance  has  been  approved.  ci)])y  it  into  your  Trial  Balance  Book,  but 
do  not  make  an  Inventory  of  Ivesources  and  Liabilities,  and  Balance  Sheet. 

Trial  IJiilances  and  Balance  Sheets  in  Business,  In  business  it  is  customary  to 
take  a  Trial  Balance  once  a  month,  and  to  make  an  Inventory  of  Besources  ami  Liabilities 
and  a  Balance  Sheet  to  ascertain  the  gain  or  loss  and  the  true  standing  of  the  business  once 
or  twice  a  year.  To  give  you  ample  practice  in  taking  Trial  Balances  and  making  Balance 
Sheets,  you  will  be  required  to  jierforni  these  operations  oftener  tiian  is  necessary  and  cus- 
tomary in  business. 

Carefully  read  and  study  the  following,  preparatory  to  the  continuation  and  handling  of 
the  new  features  of  tlie  business. 

Classification  of  Orders.  Our  written  order  requesting  our  bank  to  i)ay  money  out 
of  our  deposit  to  some  ])erson  named  therein  is  called  a  Check.  You  have  already  become 
acquainted  with  this  class  of  orders. 

Our  written  order  requesting  a  person  to  deliver  goods  or  valuables  of  any  kind  to  some 
person  (either  himself  or  some  one  else)  named  therein  is  called  an  Onler.  You  are  also 
familiar  with  this  class  of  orders. 

Our  written  order  requesting  a  person  (usually  some  one  who  owes  us)  to  pay  to  some 
person  (either  ourselves  or  some  one  we  owe)  named  therein  is  called  a  Draft. 

A  bank  or  banker's  written  order  reqiicsting  some  other  bank  or  banker  to  pay  money  to 
some  person  named  therein  is  called  a  Bank  Draft  or  Bill  of  Exchange. 

Drafts.  A  draft  is  a  written  order  <>n  a  person  requesting  him  to  pay  a  certain  sum  of 
money  to  another  person.  A  draft  diliVrs  from  a  cheek  in  that  it  is  drawn  on  an  individual, 
while  a  check  is  drawn  on  some  bank  or  banker.  When  a  bank  or  banker  draws  a  draft  on 
another  bank  or  banker  it  is  known  as  a  Bank  Draft  or  Bill  of  Exchange. 

When  l*ayal)le.  There  are  two  kiiuls  of  drafts.  Those  ])ayable  wlu-n  made,  arc  termed 
sight  drafts  or  demand  drafts;  those  jjayablc  at  some  future  time  are  termed  time  drafts. 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


51 


Object.  The  primary  object  of  drafts  is  to  facilitate  tlie  collection  and  payment  of  debts, 
and  obviate  the  iuoonvenieuce,  exjiense,  risk  and  delay  incident  to  transmitting  money  from 
place  to  place. 

Form  of  Draft.     The  following  is  the  form  of  draft  in  common  use. 


■<^  - 


.Jar/?^^^^a€Zifi!<^9^^^ 


i^ 


ti^i22= 


In  the  above  draft  Martin  Williams  requests  Edward  Small  to  pay  George  W.  Muster  $500. 
The  presumption  is  that  Small  owes  Williams  or  Williams  would  not  request  him  to  pay 
Muster,  whom  Williams  must  be  owing  or  he  would  not  order  the  money  to  be  paid  to  him. 

Martin  Williams  is  the  draiuer  of  the  draft,  Edward  Small  is  the  dratvee,  and  George  W. 
Muster,  i\\e  payee.  The  drawer  is  the  one  who  gives  the  order,  the  drawee  is  the  one  on 
whom  it  is  drawn  and  who  is  exjiected  to  pay  to  the  payee,  who  is  to  receive  the  money. 

When  Martin  Williams  mails  this  draft  to  Geo.  W.  Muster,  of  San  Francisco,  he  debits 
Geo.  W.  Muster  on  his  books  and  credits  Edward  Small,  because  Muster  will  receive  value, 
and  Small  will  sujjply  value  when  he  pays  the  draft. 

When  Muster  receives  the  draft  he  takes  it  to  Small,  who  resides  in  the  same  city,  and 
receives  the  cash  for  same.  On  his  books  he  will  debit  cash  and  credit  Williams,  because 
Williams  ordered  tlie  value  to  be  supplied  to  him.  It  would  have  been  impossible  for  him 
to  get  money  from  Small  without  Williams'  order,  because  Small  is  not  one  of  Muster's 
debtors. 

Small  will  debit  Williams  because  he  paid  a  debt  for  him,  thereby  indirectly  supplying 
value  to  him,  and  credit  cash. 

Note. — If  for  some  reason  Small  were  to  refuse  to  pay  the  draft,  neither  Small  nor  Muster  would  make 
any  records  on  their  books.  Muster  would  mail  the  draft  to  Williams,  stating  that  payment  was  refused. 
Williams  would  tlien  be  obliged  to  make  an  entry,  crediting  Muster  and  debiting  Small,  to  cancel  the  entry 
made  when  the  draft  was  sent. 

The  General  Eules  for  debiting  and  crediting  are  to  be  applied  to  all  drafts. 

Special  Instructions  for  Debiting  and  Crediting  Drafts,  (a)  As  you  have 
already  learned,  when  you  give  your  check  to  a  person,  tluit  person  is  debited,  because  he 
received  the  value,  and  Cash  account  is  credited,  because  it  supplied  the  value  out  of  your 
deposit  in  the  bank  on  which  the  check  was  drawn.  Likewise  when  you  order  (draw  a  draft 
on  him)  one  of  your  debtors  to  pay  one  of  your  creditors  a  certain  sum  of  money,  you  debit 
the  creditor  because  he  receives  the  value,  and  credit  the  debtor  because  he  supplies  it.  Apply 
these  instructions  to  No.  66. 


52  Ol-FICE    ROUTIMi    AND    liOOKKEEPING. 

(b)  When  you  draw  a  draft  on  one  of  your  debtors  payable  to  yourself  and  leave  it  at  the 
bank  for  collection,  you  make  no  entry  until  the  bank  notifies  you  that  the  amount  has  been 
collected  and  placed  to  your  credit,  when  you  will  debit  Cash  l)ecause  that  account  received 
the  value,  and  credit  the  party  from  whom  the  account  was  collected  because  he  supplied 
the  value.  Should  the  bank  fail  to  make  the  collection,  no  entry  will  be  necessary.  Apply 
these  instructions  to  No.  lol. 

(c)  When  you  receive  a  time  draft  drawn  on  some  person  and  accejited  by  that  person,  and 
endorsed  over  to  you  by  the  payee  (the  one  to  whom  it  is  payable),  it  is  a  written  promise  to 
pay  you  a  certain  sum  of  money.  You  debit  Bills  Receivable  because  that  account  received 
the  value,  and  credit  the  party  (the  payee)  who  endorsed  the  draft  because  he  supplied  the 
value  to  your  business.     Apply  these  instructions  to  No.  116. 

(d)  When  one  of  your  creditors  orders  you  (draws  a  draft  on  you)  to  pay  a  certain  sum 
of  money  to  some  person  named  therein,  it  is  notliing  more  than  his  request;  when  you  pay 
it,  the  creditor  who  ordered  you  to  pay  it  is  debited  because  indirectly  he  received  the  value, 
and  Cash  account  is  credited  because  it  supplied  the  value.  When  it  is  jiayable  to  himself 
the  same  rule  applies,  tlie  only  difference  being  that  he  receives  the  value  directly  instead  of 
indirectly.     Api)ly  these  instructions  to  No.  89. 

(e)  When  one  of  your  creditors  orders  you  (draws  a  draft  on  you)  to  pay  a  certain  sum 
of  money  at  a  future  time  to  some  person  named  therein  and  you  promise  (in  writing)  to  pay 
it,  it  becomes  a  Bills  Payable.  The  jiarty  ordering  you  (drawing  on  you)  to  pay  it  is  debited 
because  either  directly  or  indirectly  he  received  the  value  —  directly  when  paj'able  to  him- 
self and  indirectly  when  payable  to  some  one  else — and  Bills  Payable  is  credited  because 
that  account  sujjplied  the  value.  To  promise  to  pay  a  draft  in  writing  is  to  write  across  the 
face  of  the  draft  '"Accepted,"  the  date  and  your  signature,  which  is  equal  in  effect  to  giving 
a  party  your  promissory  note.  It  is  customary  to  write  the  acceptance  in  red  ink,  although 
there  is  no  necessity  for  so  doing.     Apply  these  instructions  to  No.  119. 

The  Baiili  Draft.  AVlien  you  wish  to  remit  to  a  {)arty  in  some  distant  place  in  pay- 
ment f(ir  goods,  and  the  jiarty  does  not  know  of  your  linanuial  standing,  it  would  not  be  wise 
to  send  your  check,  as  the  party,  not  knowing  that  you  have  sufficient  funds  in  the  bank  to 
pay  the  check,  would  hesitate  and  possibly  refuse  to  accept  it  as  payment,  or  would  have  the 
check  collected  by  liis  bank  before  he  would  send  the  goods  ordered.  This  would  cause 
delay,  inconvenience  and  annoyance.  The  better  plan  is  to  make  your  check  payable  to 
"New  York  Exchange"  (or  exchange  ou  some  other  city,  depending  on  where  your  bank  has 
a  corresi)ondent),  take  it  to  your  bank  and  receive  a  bank  draft  for  same,  and  send  it  to  the 
party  from  whom  you  desire  to  purchase.  This  will  be  accepted,  although  you  are  a  stranger 
to  him. 

Suppose  you  wish  to  purchase  10  brls.  New  Orleans  Molasses  from  Edwin  J.  Wright,  of 
New  Orleans,  and  the  cost  of  same  is  §120.  You  will  write  your  check  for  $120  })ayable  to 
"Philadelpliia  Exchange,"  favor  Edwin  J.  Wright;  taking  the  cheek  to  the  bank  wlucli  in 
the  illustration  given  on  the  next  page  is  the  German  National  Bank,  you  will  receive  a 
bank  draft  similar  to  the  following: 


OFFICE    ROUTINE    AND    BOOKKEKl'I  NG. 


58 


'i^ry^/aM 


€i^€^jiri/^iyOr/^//y 


"^""-m 


lYOPR  PLACE  H&REI 


-'2^.£^  ■- 


£^i22=s5^£=>:S=2S 


lu  the  above  the  German  National  Bank,  through  its  cashier,  orders  the  Central  National 
Bank  of  Philadeljjhia  to  pay  $120  to  Edwin  J.  Wright.  This  will  be  accepted  by  Mr.  Wright, 
as  his  bank  will  receive  it  on  deposit  or  cash  it  unhesitatingly,  knowing  that  it  will  be  paid 
by  the  Central  National  Bank  of  Philadelphia  when  presented.  This  bank  draft  is  known 
as  "Philadelphia  Exchange"  instead  of  "New  York  Exchange,"  as  it  is  drawn  on  a  Phihi^ 
dclphia  bank.  The  German  National  Bank  would  not  have  drawn  on  the  Central  National 
Bank  did  it  not  have  money  on  deposit  there  against  which  it  may  draw  for  the  accomoda- 
tion of  its  depositors,  as  illustrated  in  the  above  case.  In  this  case  the  Central  National 
Bank  is  known  as  the  correspondent  of  the  German  National  Bank.  Sometimes  banks  make 
a  slight  charge  for  selling  exchange;  in  that  case,  debit  Expense  for  the  charge.  If  desired 
to  show  results  in  detail,  an  account  must  be  opened  with  Exchange. 

No.  65. — Sale  on  Account.  This  order  has  been  filled.  Bill  and  enter  same.  Apply 
rules  1  and  2  in  making  the  entry.  Go  over  your  calculations  before  placing  the  bill  in  its 
receptacle.     File  the  order  properly. 

February  15,  ISO- 
No.  66. — Order  on  a  Debtor  to  Pat  a  Creditor.     Turn  to  A.  Paul,  Jr.'s  account 
in  the  Ledger  and  ascertain  the  amount  the  business  owes  him.     Take  a  blank  form  and 
write  a  draft,  ordering  A.  P.  Batson,  who  owes  the  business,  to  pay  to  A.  Paul,  Jr.,  at  sight, 
the  amount  the  business  owes  Mr.  Paul.     Examine  it  carefully  to  see  that  you  have  made 

Batson  the  drawee,  Paul  the  payee,  and  C.  W.  Hammond,        .<5:9H >:."«'".?'. Atty., 

the  drawer.  By  this  operation  the  business  ceases  to  owe  Mr.  Paul  and  Mr.  Batson  ceases 
to  owe  the  business  the  amount  named  in  the  draft.  Determine  the  accounts  to  be  debited 
and  credited  by  reading  "'  a  "  under  the  instructions  for  debiting  and  crediting  drafts,  page  51. 
Make  the  entry,  debiting  the  payee  and  crediting  the  drawee.  Why?  Write  for  explanation 
the  following:  "Drew  draft  on  A.  P.  Batson  favor  A.  Paul,  Jr."'  Place  the  draft  in  an 
envelope  and  address  it  to  A.  Paul,  Jr.  Do  not  seal  it.  Place  the  envelope  in  Vouchers  for 
Others.  When  Mr.  Paul  receives  this  draft  he  takes  it  to  Mr.  Batson  and  receives  the  amount 
called  for. 

Note.— It  has  been  pre-arranged  by  Mr.  Hammond  that  Mr.  Batson  is  to  pay  the  draft  and  Mr.  Paul 
has  agreed  to  accept  it.  It  would  be  very  unbusinesslike  to  draw  on  a  debtor  in  favor  of  a  creditor  unless 
there  is  some  assurance  that  the  draft  will  be  honored  when  presented. 


54  office  routine  and  liookkeei'ing. 

Fkbkuauy  1G,  189-. 

No.  (»7. — PruciiASK  OS  Account.  Examine  this  bill.  Have  all  the  goods  been  received? 
Are  lliu  loinis  and  ))rices  correct?  How  can  you  tell?  Test  the  calculations,  and  if  found 
correct,  0.  K.  it  and  make  the  i)roper  entiv.  ajiplyiiig  tlie  General  Rules. 

No.  6S. — Sale  os  Accouxt.  If  this  order  has  been  filled,  make  out  the  bill  and  enter 
in  your  Journal,  applying  the  General  Rules.  Re-calculate  the  items  of  your  bill  and  jilace 
it  ill  the  i)roper  rcce]itacle.     Have  you  filed  the  order? 

No.  G9. — Dkaft  Rkquesting  a  Debtou  to  Pay  a  Creditok.  H.  B.  Phillips  &  Co. 
are  willing  to  honor  (pay)  our  draft  on  them  for  the  amount  they  owe  the  business.  Turn 
to  your  Ledger  and  ascertain  the  amount.  Using  a  blank  form,  write  a  draft  requesting  them 
to  pay  that  amount  to  Kaufman,  Straus  &  Co.,  whom  tlie  business  owes.  Inspect  the  draft 
critically.  Who  receives  value  by  this  operation?  Who  supplies  the  value?  Read  "a" 
under  instructions  for  debiting  and  crediting  drafts,  page  51,  and  make  the  entry.  This 
entrv  is  similar  to  entry  for  Ko.  66.  Place  the  draft  in  an  envelope  and  address  it  to  Kauf- 
man, Straus  &  Co.     Place  the  envelope  in  the  proper  receptacle. 

Febhl-aky  ir,  189-. 

No.  70. — Note  Given  on  Account.  Write  a  note  favor  of  J.  J.  Disosway  &  Co.  for 
one  nuHitli  for  -*>r-i50,  making  it  j)ayablo  at  the  City  Bank.  Critically  examine  the  note. 
Debit — 7'ule  15 ;  credit  —  ride  20.  Make  the  entry,  being  careful  to  give  the  jiroper  expla- 
nation.    Place  it  in  the  i)roper  receptacle. 

No.  71. — DitAFT  ON  A  Debtor  to  Pay  a  Creditou.  Turn  to  Kaufman,  Straus  &  Co.'s 
account  in  the  Ledger  and  ascertain  the  amount  the  business  owes  them.  Do  not  fail  to 
deduct  the  amount  of  the  Journal  entry  on  the  16th  inst.,  as  that  entry  has  not  been  posted. 
Mr.  T.  A.  Cooke  has  agreed  to  honor  (pay)  our  draft  on  him  for  any  amount  he  owes  the 
business.  Draw  a  draft  on  him  at  sight  for  the  amount  tlie  business  owes  Kaufman,  Straus 
&  Co.  Examine  your  draft  carefully;  read  "  a"  under  instructions  for  debiting  and  cred- 
iting drafts,  page  ol .  and  make  the  entry.     This  entry  is  similar  to  entries  for  Nos.  66  and  69. 

February  IS,  189-. 

No.  72. — Sale  on  Account.  Bill  the  goods  called  for  in  this  order  if  they  have  been 
sent.  How  can  you  tell?  Make  the  entry,  applying  rules  1  and  2.  Re-calculate  the  items 
on  the  bill,  then  place  it  in  the  projier  receptacle.      File  the  order. 

No.  73. — Cash  Sales  Retail  Department.  Mr.  Winter  turns  over  to  you  this  Cash 
(No.  73),  being  the  amount  received  from  cash  sales  in  the  retail  department.  Count  it 
carefully  and  make  the  entry  in  the  proper  book,  ajiplying  rules  1  and  2.  Place  the  Cash 
in  the  Cash  Drawer. 

Study  the  following  and  be  pre])ared  to  answer  all  the  questions. 

Interest  mid  Discount.  Interest  is  the  compensation  received  or  paid  for  the  use  of 
money  ivhen  or  after  it  is  due.  Discount  is  the  compensation  received  or  paid  for  the  use 
of  money  /)i'fore  it  is  due.  The  object  of  this  account  is  to  show  the  gain  or  loss  resulting 
from  loaning  or  borrowing  money,  or  discounting  and  buying  Commercial  Pajier.  By  Com- 
mercial Paper  is  meant  notes,  drafts,  etc.  The  Special  Rules  for  debiting  and  crediting 
Inf>.rest  &  Discount  are: 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


oa 


'21.     Debit  Inlerest  cf-  Discount  token  either 

costs  the  business  value. 


99 


Credit  hilercst  i&  Discount  when  either 
supidies  value  to  the  business. 


When  the  debit  side  of  the  account  is  the  hirger  the  difiorence  is  a  Loss;  when  the  credit 
side  is  the  larger  the  difference  is  a  Gain.  The  above  rules  for  debiting  and  crediting  will 
apply  also  to  Exchange,  Premium,  Collection,  Storage,  Commission  —  in  fact  to  all  allowance 
accounts.  It  is  customary  to  keep  Interest  and  Discount  in  one  account,  ultliough  some 
prefer  to  keep  an  account  with  Interest  and  another  witli  Discount. 

Note. — In  calculating  interest  and  discount  the  rate  to  be  employed  is  &%,  and  days  of  grace  are  not  to 
be  considered. 

TRANSACTIONS   ILLUSTRATING    INTEREST  &   DISCOUNT  ACCOUNT. 

Jan.  1.  Paid  interest  on  note  favor  Joseph  Winter,  $6.25.  Jan.  2.  Received  cash  for 
interest  on  John  Keller's  note,  $7.20.  Jan.  8.  Purchased  a  note  from  Jos.  Frey  for  $400, 
less  discount  to  maturity,  $3.80.  Jan.  12.  Discounted  my  note  at  bank  for  $6000,  the  dis- 
count being  85. CO.  Jan.  18.  Received  cash  from  H.  Stadler  for  his  note  due  to-day,  $800, 
and  interest,  $48.  Jan.  23.  Paid  annual  interest  on  my  note  favor  Martin  Schwartz,  $21. 
Jan.  20.  Purchased  a  note  from  August  Sclireiber  for  $650,  less  discount  to  maturity,  $4.60. 
Jan.  30.    Discounted  Jacob  Mauser's  note  at  bank,  the  discount  being  $6.75. 


-y^ 


So 
S/ 


__2. 


^' 


t^  ^ 


Z-^ 


-2. 


«^^" 


.AsU 


*To  be  written  in  red  ink. 

The  debit  side  of  the  above  account  shows  that  Interest  &  Discount  has  cost  the  business 
value  to  tlie  amount  of  $39.60;  tlie  credit  side  sliows  that  value  has  been  supplied  to  the 
business  to  the  amount  of  $63.60;  the  difference  between  what  has  been  supplied  (63.60) 
and  what  has  been  paid  out  (39.60)  is  $24,  which  is  a  Gain.  In  case  more  has  been  paid  out 
than  has  been  received,  the  result  is  a  Loss. 

QuESTioxs.  What  is  Interest?  What  is  Discount?  When  is  Interest  &  Discount  account 
debited?  When  credited?  When  the  debit  side  of  the  account  is  the  greater,  is  the  differ- 
ence a  Loss  or  a  Gain?  To  what  other  accounts  will  the  above  rules  apply?  What  is  the 
object  of  keeping  the  Interest  &  Discount  account? 


56  OlFICE    ROUTINE    AND    BOOKKEEPING. 

No.  74. — XoTF,  DiscorxTEi)  at  Bank.  Mr.  Ilammond  wants  you  to  h.ive  discounted 
at  bunk  11.  JJ.  Pliillips  &  Co.'s  note  of  the  31st  ult.  Take  the  note  from  your  Casli  Drawer 
and  find  how  many  days  it  has  to  run,  including  the  day  it  falls  due.  Calculate  the  discount 
at  6^  for  the  number  of  days  it  lias  to  run.     Endorse  the  note  in  blank  (on  the  left-hand 

end);  i.  e.,  write  "  C.  W.  Hammond,  (you":  .name> Atty."     Take  it  and  your 

Pass  Book  to  the  bank.  The  bank  will  discount  it  (purchase  it,  less  the  discount  to  maturity). 
Tell  the  clerk  what  the  discount  amounts  to,  and  have  him  enter  the  amount  of  the  proceeds 
in  your  Pass  Book.  Having  received  the  pro))er  credit  in  your  Pass  Book,  return  to  your  desk 
and  enter  the  following  on  the  left-hand  stub  of  the  Check  Book:  "Feb.  18,  discounted 
n.  B.  Phillips  &  Co.'s  note  $400  less  discount,  80(i(,  399.20."  Add  the  net  proceeds  (399.20) 
to  the  amount  in  bank.  In  your  Cash  Book  on  the  debit  side  record  the  following:  "  18, 
Bills  Receivable,  Dis.  II.  B.  Phillips  &  Co.'s  note,  |!400."  (Take  more  than  one  line  for 
explanation  whenever  necessary.)  Ou  the  credit  side  of  your  Cash  Book  record  the  following: 
"  18,  Interest  &  Discount,  II.  B.  Phillips  &  Co.'s  note,  80^."  Why  do  you  debit  cash  for  $400? 
{UulcS.)  Why  do  you  credit  Bills  Receivable  for  1400?  {Rule  18.)  Why  do  you  debit 
Interest  &  Discount?  {Rule  21.)  Why  do  you  credit  Cash  for  80^?  {Rule  4.)  Look  up 
these  rules  carefully  and  do  not  pass  by  this  transaction  before  you  understand  it  thoroughly. 

The  bank  gives  you  §309.20  for  the  note;  ;'.  e.,  it  increased  your  deposit  that  amount,  which 
is  equal  to  paying  you  $400  and  you  paying  it  80j!'  discount,  just  as  the  records  in  your 
Cash  Book  make  it  appear  you  diil.  Remember  that  a  note  is  always  debited  and  credited 
for  its  face:  therefore,  when  you  sell  a  note  to  a  bank  or  to  some  other  person  for  less  than 
its  face  it  will  be  necessary  to  make  the  entry  on  the  debit  side  oLthe  Cash  Book  for  the  full 
amount;  on  the  credit  side  make  the  entry  for  the  amount  allowed  the  party  to  whom  you 
sell  it,  for  the  accommodation,  whicli  is  charged  to  Intei'est  &  Discount.  Did  Interest  & 
Discount  cost  the  business  value,  or  has  it  produced  value  to  the  business,  by  this  transaction? 
What  is  the  bank  going  to  do  with  the  note  that  it  has  just  discounted  for  you?  Who  will 
pay  the  note  when  it  becomes  due?  In  case  they  fail  to  pay  it,  who  will  be  held  responsible 
by  the  bank  for  its  ])ayment?     Why? 

Note. — In  Pliiljuiclphin,  Baltimore,  Louisville  and  some  other  cities  it  is  customary  to  include  botli  the 
day  of  discounl  and  llje  day  of  niatnrity  wlii-n  computing  the  banlc  discount  on  commercial  paper.  Follow 
the  instructions  as  given  above  unless  otherwise  directed  by  the  teacher. 

Fkdruaky   20,   189-. 

Xo.  75. — Note  Paid  isv  Check.  The  note  favor  of  Henry  Knefely  &  Son,  whicli  is  due 
to-day,  has  been  left  with  your  teacher  for  collection.  After  filling  the  stub  of  your  Check 
Book  ])roi)erIy,  write  the  check,  making  it  payable  to  Henry  Knefely  &  Son.  Take  it  to  the 
teacher  and  get  him  to  cancel  the  note.  File  the  note  as  a  receipt.  What  account  is  to 
be  debited?  {Rule  19.)  What  account  has  supplied  value?  {Rule  4-)  Make  the  entry  in 
the  Cash  Book.  When  entries  are  made  for  checks  issued,  on  which  side  of  the  Cash  Book 
are  they  always  made?    Why?    Have  you  written  the  i)roper  explanation  for  this  entry? 

February  20,  189-. 

No.  76. — Purchase  from  an  Out  of  Town  Party.  Mr.  Hammond  has  ordered  the 
goods  called  for  in  this  bill.  The  goods  have  all  been  received  and  the  freight  h.as  been  pre- 
paid and  added  to  the  bill.     In  order  to  receive  the  goods  it  was  necessary  for  Mr.  Winter  to 


OFFICE    ROUTINE    AND    BOOKKEEPING.  57 

present  the  shipping  receipt  that  accompanied  this  bill,  at  the  local  freight  office.  Oo  over 
the  calculations  and  addition,  and  if  found  correct  0.  K.  same.  Make  the  entry,  applying 
rules  1  and  2.     File  the  bill. 

No.  77. — Cash  Remitted  to  a  Creditor.  Write  a  check  favor  A.  Engelhard  &  Son 
for  $200  to  apply  on  account.  Have  you  filled  the  stul)  and  deducted  the  amount?  Write 
them  a  letter  as  follows: 

0''_"'_':.V'.V'<'J.'fM ,  Fehrunni  '20.  ISO-. 

Messrs.  A.  Exgelhard  cf-  Son, 

Louisville,  Ky. 
Gentlemen, — 

Enclosed  please  find  my  check  for  SSOO  to  apply  on  account.      Please  ncknuwledye 
receipt  of  same,  and  obliye. 

Yours  truly, 

C.  W.  Hammond, 

pay  Uluur  name) 

Place  the  check  on  the  letter  sheet,  then  fold  the  letter  properly,  and  after  addressing 
the  envelope  correctly,  insert  it  but  do  not  seal  it.  Place  the  envelope  in  Vouchers  for 
Others.     Make  the  entry,  applying  I'ules  1  and  2.     In  what  book  is  the  entry  made? 

No.  78. — Purchase  from  an  Out  of  Town  Party.  The  goods  called  for  in  this  bill 
have  been  ordered  by  Mr.  Hammond  from  C.  Wilt  &  Son's  salesman,  who  was  in  the  city 
last  week.  Have  the  goods  been  received?  Are  the  prices  correct?  How  can  you  tell? 
Notice  that  the  freiglit  has  been  prepaid  and  added  to  the  bill.  Test  the  calculations  and 
0.  K.  the  bill.  What  would  you  do  in  case  you  discovered  an  error?  Make  the  entry, 
applying  the  General  Rules.     File  the  bill. 

No.  79. — Note  Discounted  at  Bank.  Discount  Frey  &  Thomas'  note  at  bank.  Find 
how  many  days  it  has  to  run,  including  the  due  date.  Take  it  and  your  Pass  Book  to  the 
bank  and  tell  the  clerk  what  the  discount  amounts  to.  Also  see  that  you  receive  proper 
credit  in  your  Pass  Book  for  tlie  net  proceeds.  Return  to  your  desk  and  make  a  record  on 
the  left-hand  stub  of  your  Check  Book  as  instructed  for  No.  74.  Have  you  added  the  net 
proceeds  to  the  amount  in  bank?  What  has  the  business  parted  with  (supplied  to  others)? 
What  account  cost  the  business  value?  {Rule  21.)  What  has  the  business  received  in  return 
for  the  note  (Bills  Receivable)  it  sold  to  the  bank?  On  the  debit  side  of  the  Cash  Book 
enter  the  face  of  the  note  as  instructed  for  No.  74;  on  the  credit  side  enter  the  discount  as 
])er  instructions  for  No.  74.  Have  you  written  the  proper  explanation?  Why  not  enter  the 
actual  amount  received  from  the  bank  on  the  debit  side  of  the  Cash  Book  and  omit  the 
entry  on  the  credit  side? 

Feeruary  22,  189-. 

No.  80. — Sale  to  an  Out  of  Town  Party.  Order  No.  80  is  from  an  out  of  town 
party.  His  references  speak  well  of  him,  and  his  ratings  by  Dun  and  Bradstreet  (Mercantile 
Agencies)  are  good.  Mr.  Hammond  has  ordered  the  goods  to  be  shipped  to  him.  Bill  and 
enter  same,  applying  General  Rules.     Go  over  your  calculations.     It  will  be  necessary  for 


58 


OFFICE    ROUTINK    AND    BOOKKEEPING. 


you  to  fill  out  a  triplicate  set  of  Sliipjiing  Receipts  (sometimes  called  Bills  of  Ladin<r)  in  the- 
blank  book  furnished  for  that  purpose  as  follows: 


SHIPPING  RECEIPT. 


Received  from 


,,jr^l^Z..5^3^2,<?r5-' 


lorn  riMUBHCMB) 


.^=2Li 


f^l89 


/^ 


BY  INTER-STATE  TRANSPORTATlUN  COMPANY, 


Tho  proporty  described  below,  in  apparent  pood  order,  except  oa  doUmI  (cootcola  and  ooadltloo  of  coDtont«  of  packafi-ei  uoknoirn), 
marked,  coDblgncd,  and  declined  a«  Indlcatod  bolow,  which  said  Compani' agrvca  to  carry  to  tbo  said  destination,  if  oa  Ita  road,  othor- 
wlso  to  dollvyr  to  another  carrier  on  Iho  routo  to  said  dijalinalloD. 

It  Is  mutually  ajrocd,  in  consideration  of  tho  freight  cbartjed  (or  this  serrico,  as  to  each  carrier  of  all  or  any  of  said  property  oror 
all  or  any  portion  of  Bald  routo  to  destination,  and  as  to  each  party  at  any  lime  intorcslod  in  all  or  any  of  Baid  proporiv,  that  every 
service  to  bo  performed  hereunder  shall  bo  subject  toall  the  condttloDB,  whether  printed  or  written,  shown  or  endorsed  buroon,  and, 
which  are  horcby  agreed  to  by  tho  shipper  and  by  him  accepted  (or  himself  and  aiiblgns  as  just  and  reasonable. 


UARKS,  CONSIONS  AND  DESTINATION. 


DESCRIPTION  OF  ARTICL.ES. 


WEIGHT 
SUBJECT  TO  CORRECTION. 


For  Inier-Staie  Transportation  Company, 


^Frfigbt  yigeiit. 


Observe  that  your  forms  are  printed  in  triplicate.  The  first  is  designated  as  Original, 
the  second  as  Forwarding  Order,  and  the  third  as  Duplicate.  After  }'ou  have  the  set  filled 
out  as  illustrated  above,  take  your  book  to  the  freiglit  agent,  or  in  ease  there  is  none,  take 
it  to  your  teacher,  who  will  act  as  freight  agent,  and  have  him  receipt  for  the  goods.  In 
business  no  freight  agent  would  sign  a  shijiping  receipt  or  bill  of  lading  unless  accompauied 
by  the  goods  to  be  ship])ed. 

The  freight  agent  will  keep  the  Forwarding  Order ;  you  will  leave  the  Duplicate  in  the 
book  as  a  receipt  in  case  any  dispute  arises  or  the  goods  fail  to  reach  their  destination;  and 
)'ou  will  detach  the  Original  and  enclose  it  with  the  bill.  Place  both  in  an  envelope  addressed 
to  tiic  party  who  ordered  the  goods,  and  put  tho  envelope  in  Vouchers  for  Others. 

Proving  Casli.  In  neat  pencil  figures  foot  the  sides  of  your  Cash  Book  and  ascertain 
whether  the  balance  as  shown  by  the  Cash  Book  agrees  with  the  amount  on  hand  (in  the 
bank  and  Cash  Drawer).  In  case  there  is  a  discrepancy  which  you  can  not  locate  after 
making  a  diligent  effort,  report  same  to  your  teacher,  but  do  not  be  disappointed  if  he 
refuses  to  find  your  error  for  you.  It  may  be  of  such  a  nature  as  not  to  warrant  his  assist- 
ance, and  be  due  entirely  to  your  carelessness. 

Sixtli  Keport.  Make  a  report  on  a  Eeport  Blank  and  hand  it  to  your  teacher  together 
with  the  vouchers  and  cash  for  otliers.  Ee-write  any  of  the  vouchers  that  do  not  meet  with 
approval.  Have  your  journal  sheet  and  cash  book  sheet  examined,  after  which  copy  them  into 
your  regular  Journal  and  Cash  Book,  being  careful  to  make  your  work  look  as  neat  as  possible. 

Postiiig.  Ojien  accounts  as  follows:  Interest  &  Discount  on  the  20th  line  of  page  4; 
A.  J.  (jouley,  Louisville,  Ky.,  on  j)age  11;  Kcnaker  &  Heinrich,  City,  on  the  aOth  line  of 
page  16;  A.  Engelhard  &  Son,  Louisville,  Ky.,  on  page  17;  and  C.  Wilt  &  Son,  Philadelphia, 
Pa.,  on  tiie  14th  line  of  page  17.  Post  to  your  Ledger,  being  sure  that  you  make  no  errors 
Id  posting  from  the  Cash  Book.     Remember  the  items  on  the  debit  side  of  the  Cash  Book 


OFFICE    ROUTINE    AND    BOOKKEEPING.  59 

are  posted  to  the  credit  of  your  Ledger  accounts;  also  tlie  items  on  tlio  credit  side  of  tlie  Cash 
Boolv  are  jiostcd  to  the  debit  of  tlie  Ledger  accounts.  Check  over  your  jiosting  carefully; 
never  fail  to  check  over  your  posting,  as  thereby  you  will  save  much  worry,  annoyance 
and  time. 

No.  81.^ — Office  Furniture  Purchased  for  Cash.  The  items  called  for  in  bill  Xo. 
81  have  been  received  and  the  prices  are  correct.  Verify  the  addition  and  0.  K.  the  bill  if 
found  to  be  without  error.  This  furniture  is  for  use  in  Mr.  Hammond's  ])rivate  office  and 
in  the  shipping  dejiiirtment.  Pay  the  bill  by  check.  Place  the  cheek  in  the  proper  recep- 
tacle and  file  tiie  bill  on  the  Voucher  File.  JIake  the  entry  from  the  stub  of  the  Check 
Book,  applying  rule  IS  for  the  debit  and  rtile  4  for  the  credit,  and  charging  to  Furniture  & 
Fixtures  account.  Furniture  &  Fixtures  account  is  treated  exactly  like  Expense  account,  as 
it  is  a  subdivision  of  that  account  and  is  opened  to  show  what  amount  has  been  exj)ended 
for  furniture  and  fixtures  instead  of  being  included  under  the  general  heading  of  Expense. 
{See  explanation  and  illuftt ration  of  Expense  account,  page  17.) 

No.  82. — Purchase  ox  Account.  Calculate  the  items  of  bill  No.  82  to  see  that  no 
error  exists.  Have  the  goods  been  received?  Make  the  entry,  applying  the  General  Rules. 
File  the  bill  properly. 

February  2.3,  189-. 

No.  8.3. — Sale  to  an  Out  of  Town  Party.  Bill  and  enter  this  order.  Go  over  your 
calculations  a  second  time  and  make  the  entry,  applying  rules  1  and  3.  Make  out  three  (3) 
shipping  receipts,  applying  the  instructions  as  given  for  last  order.  Take  them  to  the  freight 
agent  and  have  him  receipt  the  same.  Enclose  the  Original  witii  the  bill  for  the  goods  in  a 
correctly  addressed  envelope,  but  do  not  seal  it. 

No.  84-. — Order  on  a  Debtor  to  Pay  a  Creditor.  Write  a  draft  ordering  A.  J. 
Gouley,  of  Louisville,  Ky.,  to  pay  A.  Engelhard  &  Son  of  the  same  city  the  amount  the 
business  owes  them.  Turn  to  the  proper  book  and  find  the  amount.  As  both  parties  reside 
in  the  same  city  it  will  obviate  the  necessity  of  Mr.  Gouley  remitting  to  C.  W.  Hammond 
the  amount  he  owes  our  business,  and  C.  W.  Hammond  in  turn  remitting  to  A.  Engelhard  & 
Son  the  amount  the  business  owes  them.  When  A.  Engelhard  &  Son  receive  this  draft  they 
will  take  it  to  Mr.  Gouley,  who  will  pay  them  the  amount  as  he  agreed  to  when  he  gave  us 
the  last  order.  {See  order  on  file.)  What  account  receives  value?  What  account  supplies 
value?  Make  the  entry,  debiting  the  party  who  receives  value  and  crediting  the  party  who 
supplies  value.  Inclose  the  draft  in  a  properly  addressed  envelope.  To  whom  will  you  send 
the  draft,  the  Payee  or  the  Drawee?  Why  not  send  it  to  the  other  party?  Your  teacher 
will  tell  you  if  you  can  not  determine  for  yourself. 

No.  85. —  Cash  Received  on  Account.  Enter  this  check  (No.  85)  and  place  it  in  the 
Cash  Drawer.  What  account  received  value?  What  account  supplied  value?  In  what  book 
are  all  checks  entered?  Do  you  examine  all  checks  carefully  as  to  the  form,  wording  and 
proper  method  of  filling  or  writing  same? 

Ask  questions  at  the  proper  time  on  all  points  you  do  not  fully  understand.  A  good 
student  should  be  a  good  questioner.  In  performing  this  work  never  regulate  your  pace 
by  that  of  some  other  student  or  endeavor  to  accomjilisli  more  than  you  can  understand- 
ingly,  and  not  sacrifice  the  appearance  of  your  work.  Work  with  dispatch  but  never  hurry; 
remember,  "  What  is  worth  doing  at  all  is  worth  doing  well." 


60  office  routine  and  bookkeeping. 

February  24,  189-. 

No.  SG. —  Cash  Received  ik  Fi'll  of  AccorxT.  This  check  (Xo.  86)  is  sent  in  full 
for  the  amount  tJie  debtor  owes  the  business.  Turn  to  his  account  and  determine  whether 
the  amount  of  the  clieck  is  equal  to  the  amount  as  sliown  by  liis  account.  If  found  to  agree, 
make  the  entry,  api)lying  rules  1  and  2.  Place  the  check  in  the  proper  receptacle.  Why 
are  checks  more  commonly  used  by  business  men  than  currency  or  specie?    Give  two  reasons. 

No.  87. — Deposit.  Make  a  deposit.  Count  all  the  currency  in  the  Cash  Drawer.  Fill 
out  a  deposit  ticket,  entering  the  amount  opposite  the  word  "  currency."  Endorse  the  checks 
as  previously  instructed,  and  enter  each  check  sejjarately  where  indicated  on  the  deposit  ticket. 
Foot  your  deposit  ticket,  then  carefully  re-count  your  currency  and  checks,  also  re-add  the 
items  to  make  certain  that  there  is  no  mistake.  Enter  the  total  amount  of  your  deposit  on 
the  right-hand  stub  of  your  Check  Book,  and  add  it  to  the  amount  in  bank.  On  the  left- 
hand  stub  make  a  copy  of  the  items  on  your  deposit  ticket  so  that  reference  can  be  made  to 
it  when  desired.  Take  N^our  deposit  and  Pass  Book  to  the  bank.  Have  you  received  proper 
credit  for  your  deposit? 

No.  88. — Note  Discounted  at  Baxk.  Take  from  your  Cash  Drawer  J.  E.  Grimm's 
note  dated  Feb.  14,  and  calculate  the  discount  preparatory  to  having  it  discounted  at  the 
bank.  First,  determine  the  time  it  has  to  run  including  the  due  date.  After  you  have 
found  the  discount,  endorse  the  note  in  blank  as  previously  instructed.  Take  it  to  the  bank 
and  state  what  the  discount  amounts  to.  After  receiving  credit  for  the  net  proceeds  in  your 
Pass  Book,  return  to  your  desk  and  make  the  proper  record  on  your  Check  Book,  as  per 
instructions  for  Nos.  74  and  79.  Be  sure  to  refer  to  Nos.  74  and  79  so  that  you  will  make 
no  error.  From  the  stub  of  the  Check  Book  enter  the  face  of  the  note  on  the  debit  side  of 
the  Cash  Book,  applying  previous  instructions  as  jier  above  numbers,  and  write  the  proper 
explanation.  On  the  credit  side  of  your  Cash  Book  debit  Interest  &  Discount  for  the  proper 
amount,  being  careful  to  refer  to  previous  instructions,  and  write  the  explanation  correctly. 
Why  is  Bills  Receivable  credited?  {Ride  18.)  Why  is  Cash  debited  for  $1500?  Why  is 
Interest  &  Discount  debited?  {Rule  21.)  Why  is  Cash  credited  for  the  amount  of  the  dis- 
count? Do  not  fail  to  consult  your  teacher  in  case  you  do  not  clearly  understand  any  of  the 
details  given  for  this  class  of  transactions.  , 

No.  89. —  Sight  Draft  Paid  in  Cash.  No.  SO  is  a  written  order  requesting  Mr.  Ham- 
mond to  pay  a  certain  sum  of  money  to  the  drawers  of  the  draft.  As  the  business  is  indebted 
to  them  for  that  amount  and  over,  you  will  pay  the  draft,  by  check.  The  entry  for  this 
transaction  is  similar  to  the  entry  made  when  cash  is  paid  to  a  party  on  account,  as  the  draft 
is  nothing  more  than  a  request,  and  should  Mr.  Hammond  for  some  cause  or  other  refuse  to 
pay  it,  no  entry  \yould  be  required.  Notice  the  endorsements  made  on  the  back  of  the  draft. 
The  last  one  was  made  by  the  bank's  messenger  who  brought  the  draft  to  your  office  to 
receive  ])aymont  for  same.  When  making  this  entry  write  for  explanation  "  Paid  sight  draft." 
File  the  draft  on  the  Voucher  File  as  a  receipt. 

February  2G,  189-. 

No.  90. — Cash  S.yles,  Retail  Department.  This  cash  (No.  90)  the  salesman  turns  in 
as  the  amount  received  for  cash  sales  for  the  past  week.  Count  it  carefully.  Make  the  entry 
correctly  in  tlie  proper  book.  Re-count  the  cash  and  jilacc  it  in  the  Cash  Drawer.  Have  you 
made  the  proper  entry?     Have  j'ou  written  the  projier  explanation  for  this  entry? 


OFFICE    ROUTINE    AND     BOOKKEEPING.  61 

No.  91. — Proprietor  Draws  Cash  for  Private  Use.  Mr.  Hammond  wishes  $100 
for  jn-iviite  use.  Pay  him  the  amount,  ])laeing  the  currency  in  Cash  Paid  Out.  Wlio  lias 
received  value?  What  account  su]i})lied  it?  Make  the  entry  in  tlie  proper  book,  applying 
rules  1  and  2. 

No.  92. — Proprietor  Takes  Merchandise  for  Private  Use.     Mr.  Hammond  has 

requested  Mr.  Winter  to  send  one  barrel  of  Flour  to  liis  residence  by  the  City  Carting  Co. 
No  bill  will  be  necessary.  You  will  charue  him  cost  ])rice  for  the  Hour  and  credit  the  account 
that  supplied  the  value.  Be  sure  to  make  tlio  proper  explanation,  as  this  is  a  very  important 
part  of  any  entry. 

Febuuaky  37,   180-. 

No.  93. — Check  Received  os  Account.  This  check  (No.  93)  has  been  sent  to  apply 
on  account.  Carefully  read  the  letter  (No.  93)  tliat  accompanied  the  check.  Write  a  letter 
on  one  of  Mr.  Hammond's  letter  heads  acknowledging  receipt  of  the  check  and  state  that 
you  have  given  him  proper  credit  for  the  amount.  Your  letter  should  be  similar  to  the 
following: 

......(I™":.?'."™'. ,  Feb.  S7,  ISO-. 

Mr.  Paul  Fret, 
Ou'oisboro,  Ey. 

Dear  Sir, — 

I  am  in  receipt  of  your  favor  of  tlie  36th  inst.  enclosiny  check  for  $1501),  which 
has  been  j^laced  to  your  credit.     Please  accept  my  thanks  for  same. 
8oliciti7iy  your  f^wther  favors,  I  am. 

Respectfully. 

C.  W.  Haj>i.mond, 

pgf.  (Your  name) 

Inclose  your  letter  in  a  properly  addressed  envelope  and  place  it  in  Vouchers  for  Others. 
Make  the  entry  for  the  check,  applying  rules  1  and  2,  after  wliich  ])lace  tlie  check  in  the 
Cash  Di'awer. 

February  28,  189-. 

No.  94. — Drayage  Bill  Paid.  This  bill  (No.  94)  has  been  found  to  be  correct  and 
it  has  been  0.  K.'d  by  the  shipping  clerk.  Go  over  the  calculations.  Pay  the  bill  by  check. 
Write  the  check  and  place  it  in  the  Vouchers  for  Others.  File  the  bill  on  the  proper  file. 
Make  the  entry  from  the  stub  in  the  Check  Book.     Debit — Rule  IS;  credit — Rule  4. 

No.  95. —  Clerk's  Salary  Paid.  Pay  Mr.  Frank  Winter  $60  by  check  as  salary  for 
the  month.  Place  the  check  in  Vouchers  for  Others.  Debit — Rule  IS ;  credit — Rule  4. 
Why  is  E.tpense  debited  for  clerk's  salary? 

No.  96. — Bookkeeper's  Salary  Paid.     Mr.  Hammond  has  increased  your  salary,  and 

you  will  pay  yourself  $75  for  the  month  instead  of  $50,  as  in  the  previous  month.  Write 
the  check  and  place  it  in  the  proper  receptacle.  Make  the  entry  from  the  stub  of  the  Clieck 
Book. 

No.  97. — Deposit.  You  will  now  make  a  deposit  of  all  the  cash  on  hand.  Endorse  the 
checks  in  your  Cash  Drawer  as  previously  instructed.  Count  the  currency  and  fill  out  a 
deposit  ticket,  placing  the  amount  on  the  proper  line.  Enter  the  check  on  the  deposit 
ticket.     Re-count  your  currency  and  re-add  the  items  on  tlio  deposit  ticket.     Add  the  deposit 


62  OFFICE    ROUTINE    AND    BOOKKEEPING. 

to  the  amount  in  bank  as  sliown  by  the  Check  Book  stub.  On  the  left-liand  stub  make  a 
detailed  record  of  your  deposit  ticket.  Take  your  deposit  and  Pass  Book  to  the  bank.  After 
satisfying  jourself  that  you  have  received  proper  credit,  leave  your  Pass  Book  at  the  bank  to 
be  written  up. 

Seventh  Report.  Fill  out  a  Report  Blank  properly  and  hand  same,  together  with  the 
cash  and  vouchers  for  others,  to  your  teacher  for  examination.  Rewrite  all  vouchers  that 
do  not  meet  with  ajiproval.  Have  your  journal  and  cash  book  sheets  approved,  and  copy 
same  into  your  regular  Journal  and  Cash  Book. 

Proving  Cash.  Test  the  correctness  of  the  entries  in  your  Cash  Book  by  comparing 
its  balance  with  the  balance  on  hand.  If  found  to  agree,  you  will  balance  and  rule  the  Cash 
Book  as  previously  instructed  and  bring  the  balance  below  the  ruling  in  black  ink. 

Posting.  Open  accounts  as  follows:  Furniture  &  Fixtures  on  the  29th  line  of  page  5, 
and  Lerch  Bros.,  7  East  Pratt  St.,  City,  on  the  29tli  line  of  page  17. 

Post  to  your  Ledger  from  the  Journal.  Post  from  your  Cash  Book,  observing  previous 
instructions.  Having  finished  the  ])osting  you  will  check  (in  jjcncil)  over  same  to  locate  any 
error  you  may  have  made. 

Statements,  ^fake  out  statements  against  all  parties  who  are  indebted  to  the  business. 
Do  not  include  either  debit  or  credit  items  that  are  checked  or  ruled  off,  as  they  balance  and 
have,  therefore,  been  settled  for  in  full.  Be  careful,  however,  lest  you  have  made  errors  by 
checking  or  ruling  items  that  do  not  balance,  or  in  failing  to  check  or  rule  those  that  do 
balance.     Have  your  statements  approved. 

Trial  Balance.  Pencil  foot  all  the  accounts  in  the  Ledger  that  do  not  balance  prepara- 
tory to  taking  a  trial  balance.  Begin  the  trial  balance  on  a  journal  sheet  with  the  balance 
of  cash  as  shown  by  the  debit  side  of  the  Cash  Book.  Continue  with  all  the  accounts  in  the 
Ledger  that  do  not  balance.  Have  your  trial  balance  approved  before  proceeding  to  close 
your  books. 

Inventories.  Preparatory  to  making  a  Balance  Sheet  and  closing  the  books  to  ascer- 
tain the  standing  of  the  business,  Mr.  Hammond  has  ordered  the  shiitping  clerk  to  take  an 
account  of  stock.  Mr.  Winter  has  done  this  and  found  the  stock  on  hand  to  consist  of  the 
articles  named  in  the  February  Inventory  (No.  97a). 

Make  the  calculations  of  the  inventory  on  a  sheet  of  paper  and  have  same  approved  before 
copying  into  your  regular  Journal.     Pile  the  inventory  on  the  \"oucher  File. 

Make  an  Inventory  of  Resources  and  Liabilities,  per  previous  instructions,  and  submit 
same,  for  approval. 

Balance  Sheet.  L  Head  a  blank  Balance  Sheet  as  you  were  instructed  for  January 
balance  sheet.  2.  Copy  the  Trial  Balance  on  the  Balance  Sheet,  observing  previous  instruc- 
tions. 3.  Enter  the  inventories  in  the  Resource  column  in  red  ink.  4.  Extend  the  balances 
of  the  various  accounts  to  the  proj)er  columns,  referring  to  previous  instructions.  5.  Find 
the  Net  Gain.  6.  Find  Mr.  Hammond's  Present  Capital.  7.  Rule  and  foot  all  the  columns. 
8.  Critically  inspect  your  Balance  Sheet  and  compare  it  with  the  Model  as  given  on  page  36, 
and  if  its  appearance  is  not  good  make  another  copy  of  same.     9.    Present  for  approval. 

Closing  Acconnts  Showing  Losses  and  Gains.  1.  Enter  the  merchandise  inven- 
tory on  the  credit  side  of  Mdse.  account  in  red  ink.  2.  On  liie  jjrojier  side  enter  (in  red 
ink)  the  Gain.  3.  Carry  this  Gain  to  the  Loss  &  Gain  account,  referring  to  previous  instruc- 
tions.    4.    Bring  down  the  Inventory  below  the  ruling  to  the  debit  side  of  Mdse.  account. 


OFFICE    ROUTINE    AND    BOOKKEEPING.  63 

Close  Expense  account  and  carrj'  the  Loss  to  the  Loss  &  Gain  account.  Do  not  fail  to 
rule  every  account  that  closes  into  Loss  &  Gain  account. 

Close  Interest  &  Discount  account  and  carry  the  balance  to  the  Loss  &  Gain  account. 
This  account  is  treated  similarly  to  Expense  account. 

Furniture  &  Fixtures  account.  1.  Enter  the  inventory  on  the  credit  side  of  Furniture 
&  Fixtures  account.  3.  Enter  the  Loss  on  the  proper  side  in  red  ink.  3.  Carry  the  Loss 
to  the  proper  account.  4.  Have  you  ruled  Furniture  &  Fixtures  account  and  brought  down 
the  Inventory  in  black  ink?  This  is  a  property  account  and  is  treated  similarly  to  Merchan- 
dise account. 

Close  the  Loss  &  Gain  account  as  instructed  for  January,  properly  ruling  it  and  carrying 
the  Net  Gain  to  Mr.  Hammond's  account. 

Balance  Mr.  Hammond's  account  as  you  did  in  January  and  bring  down  the  Present 
Capital.  Check  the  balances  of  the  accounts  just  closed  with  the  balances  as  they  appear 
in  the  Resource  and  Liability  columns  of  the  Balance  Sheet  to  satisfy  yourself  that  you  have 
made  no  error  in  closing.     Present  all  books  for  inspection. 

Review  Questions.  In  business  how  often  is  it  customary  to  make  a  balance  sheet  and 
close  accounts  showing  losses  and  gains?  What  reasons  ai'c  there  for  not  kecjung  account 
of  Furniture  &  Fixtures  in  the  Expense  account?  What  is  a  draft?  What  other  kinds  of 
orders  are  there?  When  is  a  bank  draft  preferable  to  a  check?  Of  what  advantage  is  a 
draft?  What  is  the  advantage  of  having  a  note  discounted  at  a  bank?  What  disadvantage 
do  you  see  in  discounting  a  note  when  you  do  not  need  the  money?  How  often  is  it  cus- 
tomary to  take  a  trial  balance  in  business?  How  would  you  close  an  account  that  does  not 
show  a  loss  or  a  gain,  if  you  desired  to  do  so?  What  property  accounts  do  not,  as  a  rule, 
show  a  loss  or  gain?  Do  personal  accounts,  as  a  rule,  show  losses  or  gains?  When  a  debtor 
fails  and  cannot  pay  all  that  he  owes  you,  what  would  you  do  with  the  balance  he  cannot 
pay?  Would  the  business  gain  or  lose  in  that  case?  What  is  the  cbject  of  the  Cash  Book? 
In  what  way  does  it  save  labor?  What  is  a  shipping  receipt?  By  what  other  name  is  a  ship- 
ping receipt  sometimes  known? 


64  OFFICE     ROUTINE    AND    BOOKKEEPING. 

THE    BUSINESS   OF   C.  W.    HAMMOND   &.   CO 
-Makch    1,  1!S!»-. 

No.  98. — By  tliis  bill  of  pale  Mr.  riainniond  sells  his  business  to  the  firiii  of  C.  W.  Ham- 
mond &  Co.,  the  members  of  which  arc  yourself  and  Mr.  Hammond,  as  he  has  decided  to 
take  you  into  the  business  as  partner.  Kead  the  bill  of  sale,  attach  the  Inventory  of  Resources 
and  Liabilities,  then  file  it  on  the  Voucher  File.  You  will  make  a  cash  investment  equal  to 
Mr.  Hammond's  investment.  {See  Fchriianj  Balance  Sheet.)  Get  a  check  for  the  amount 
of  your  investment  from  your  teacher,  made  payable  to  your  order,  which  you  will  endorse 
over  to  the  firm  of  C.  W.  Hammond  &  Co.  as  follows:  "  Pay  to  the  order  of  C.  W.  Hammond 
&  Co.,"  then  sign  your  name  underneath.  Credit  yourself  for  this  check  on  the  sheet  repre- 
senting your  Cash  Book.  Have  you  written  the  proper  explanation?  In  the  C.  W.  Hammond 
check  book  write  a  check  favor  of  C.  W.  Hammond  <£  Co.  for  the  amount  Mr.  Hammond  has 
in  bank.  Deduct  the  amount  to  show  that  Mr.  Hammond  individually  has  nothing  in  bank. 
Place  both  cliecks  in  the  Cash  Drawer. 

Your  rights  and  privileges  will  be  the  same  as  3Ir.  Hammond's,  and  you  are  to  share  the 
Gains,  Losses  and  Assets  equally.  Study  form  No.  1  in  the  appendix,  then  write  a  partner- 
ship agreement  between  yourself  and  Mr.  Hammond  on  practice  paper.  Have  it  inspected 
by  the  teacher  before  copying  on  the  blank  jirovided  in  your  package  of  supplies.  Your 
teacher  will  sign  for  Mr.  Hammond  and  show  you  how  to  fold  and  where  to  brief  your  part- 
nershij)  agreement.  Brief  it  by  writing  where  directed  "Partnership  Agreement  between 
C.  W.  Hammond  and <y"H.P»'?.^>. ,  March  1,  1S9-."     Place  it  on  the  Voucher  File. 

Note. — In  business  two  copies  of  the  partnership  agreement  would  be  made  and  signed  by  both  partners, 
so  that  each  would  have  a  copy. 

Hereafter  sign  all  check.s  and  business  papers  as  follows:  "  C.  W.  Hammond  &  Co.,"  and 
place  your  name  on  the  form  wherever  indicated.  Be  sure  that  you  never  omit  writing  your 
name  on  each  and  every  ])ai)cr  i.ssued  by  the  business.  Do  not  sign  your  name  as  Att'y  here- 
after, which  is  not  necessary,  as  you  are  one  of  the  proprietors  and  your  rights  are  equal  to 
Mr.  Hammond's. 

Get  your  Pass  Book  at  the  bank  and  compare  the  balance  with  the  balance  as  shown  by 
the  Stub  of  the  Check  Book.  If  found  correct,  write  in  red  ink  "0.  K.  with  bank  balance. 
Mar.  1."     If  tiiore  is  a  discrei)ancy,  follow  instructions  as  given  for  last  month. 

No.  99. —  You  will  now  deposit  the  checks  on  baud.     Endorse  them  as  follows:    "Pay 

to  the  order  of  the  City  Bank,  C.  W.  Hammond  &  Co.,  per .(yoHr.nS™?! ."     Fill 

out  a  deposit  ticket,  using  the  C.  W.  Hammond  &  Co.  form.  Enter  the  amount  of  your 
deposit  on  the  right-hand  stub  of  your  C.  W.  Hammond  &  Co.  Check  Book.  On  the  left- 
hand  stub  of  your  Check  Book  make  a  detailed  record  as  i)reviously  instructed.  Take  your 
deposit  to  the  bank  and  sec  to  it  that  C.  W.  Hammond  &  Co.  receive  credit  instead  of  C.  W. 
Hammond.     This  is  very  important. 

No.  100. — By  this  deed  the  building  occupied  by  the  business  at  122-124  Main  St.,  and 
the  lots  upon  which  it  is  located,  are  transferred  to  C.  W.  Hammond  &  Co.  Read  the  deed 
carefully  and  ask  (juestions  on  any  points  you  do  not  fully  understand.  Read  it  a  second 
time,  then  write  the  check  for  same  and  place  it  in  the  proper  receptacle.  Make  the  entry 
from  the  stub  in  the  Check  Book,  applying  the  General  Rules.  Debit  Real  Estate  instead 
of  Merchandise,  as  this  is  a  kind  of  property  entirely  different  from  the  commodities  you  are 
dealing  in  as  a  business,  and  is  not  purchased  with  the  intention  of  selling  it  for  speculative 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


65 


purposes.     Brief  and  fold  the  deed  properly  and  place  it  on  the  Voucher  File.     In  what 
book  have  you  made  the  entry?     Have  you  written  the  proper  explanation? 

No.  101. — This  bill  is  for  gas  consumed  during  the  month  of  February.  You  will  pay 
it  to-day  to  take  advantage  of  the  discount  allowed  when  payment  is  made  on  the  iirst  day 
of  the  month.  Write  the  check  and  place  it  in  the  proper  receptacle.  Make  the  entry  as 
previously  instructed.     File  the  bill. 

Note. — Ordinarily  this  bill  would  be  paid  by  the  former  proprietor  who  had  the  use  of  the  gas.  In 
this  case  you  and  Mr.  Hammond  agree  that  the  partnership  is  to  bear  the  expense.  Partners  may  agree  to 
do  anything  that  is  legal. 

No.  102. — This  bill  is  for  coal  Mr.  Hammond  has  purchased  to  heat  the  building.  It 
has  been  0.  K.'d  and  receipted  and  therefore  you  will  pay  it  by  cbeck.  Apply  rules  IS  and  ^ 
in  making  this  entry.     File  tlie  bill. 

Sales  Book.  This  is  the  second  of  the  labor  saving  books  to  be  introduced.  In  this 
book  are  entered  the  purchasers'  names  and  addresses,  the  terras  on  which  the  goods  are  sold, 
and  a  detailed  record  of  the  goods  and  prices  of  same,  whenever  a  bill  is  rendered  for  the 
purchase.  When  no  bill  is  rendered  and  the  goods  are  jiaid  for  at  the  time  of  purchase,  it 
is  to  be  considered  a  part  of  the  cash  sales  for  the  day,  and  Cash  is  debited  and  Merchandise 
is  credited  for  the  total  of  such  sales,  at  tlie  close  of  the  day's  business.  In  retail  business 
houses  the  bulk  of  the  sales  are  made  to  persons  not  known  to  the  proprietors,  and  are  paid 
for  at  the  time  of  purchase.  Such  sales  are  never  entered  in  the  Sales  Book,  as  it  would 
involve  unnecessary  labor  and  inconvenience.  The  proper  thing  to  do  in  cases  similar  to 
the  above  is  to  debit  Cash  and  credit  Merchandise  for  the  total  of  the  sales  at  the  close  of- 
the  day's  business. 

In  posting  from  the  Sales  Book  debit  each  purchaser  with  the  amount  of  his  purchase, 
and  at  the  end  of  the  month,  or  when  a  Trial  Balance  is  taken,  credit  Mdse.  account  for  the 
total  sales.  It  will  be  seen  that  this  book  takes  the  place  of  the  credit  side  of  the  Mdse. 
account  in  the  Ledger. 

No.  103. — Using  the  C.  W.  Hammond  £  Co.  form  of  bill  head,  make  out  the  bill  for  this 
order,  as  the  goods  have  been  sent.  Re-calculate  the  items  of  your  bill.  Make  the  entry  as 
given  below  on  a  journal  sheet  representing  your  Sales  Book,  making  the  correct  extensions 
instead  of  the  ones  given. 


^,6^-i^^s^£^^-^^ 


66  OFFICE    ROUTINI-:    AND    HOOKKKEPING. 

Note  every  detail  closely  in  the  illustration  and  be  sure  that  your  enti-y  is  made  abso- 
lutely correct.  Place  the  terms  as  you  see  them  in  the  illustration.  The  figures  "2/lO" 
indicate  that  a  discount  of  2^  will  be  allowed  if  the  bill  is  paid  within  10  days.  "Xet  30 
days"  signifies  that  30  days  is  the  time  allowed  in  which  the  bill  may  be  jiaid,  and  it  should 
be  paid  at  the  end  of  that  time.  Observe  the  greatest  care  in  placing  the  terms  both  on 
your  bill  and  in  your  Sales  Book  so  that  no  discrepancy  will  occur.  Place  the  bill  in  the 
proper  receptacle  and  file  the  order.  No  detailed  explanation  for  entries  in  the  Sales  Book 
will  be  given  hereafter,  and  you  will  be  expected  to  refer  to  the  above  for  any  information 
regarding  the  details  of  such  entries. 

March  2,  189-. 

Invoice  Bonk.  This  is  the  third  of  the  labor  saving  books  to  be  introduced,  and  in  it 
are  entered  all  jiurcliases  of  merchandise.  Expense  bills  and  the  like  are  never  entered  in 
this  book.  Many  different  forms  are  in  use  in  the  business  houses  of  the  present  day,  and 
they  are  known  by  different  names,  some  firms  calling  them  Purchase  Books.  The  form 
used  herewith  is  one  in  common  use,  and  possesses  many  advantages  over  most  other  forms. 
{See  form  oti  page  67.)  In  this  book  the  bills  are  pasted  in  consecutive  order  after  they  are 
received  and  have  been  0.  K.'d.  When  a  bill  is  ready  for  credit,  paste  it  into  the  Invoice 
Book,  taking  care  not  to  extend  the  right-hand  end  of  the  bill  beyond  the  first  rulings  of 
the  money  columns.  To  j)ri)perly  do  this  it  may  be  found  necessary  to  trim  the  edges  of  the 
bills,  as  bills  from  different  houses  arc  not  uniform  in  size.  In  preparing  the  invoice  to  be 
pasted  into  the  book,  first  apply  the  mucilage  along  the  lower  edge  of  the  bill  and  then  let  it 
dry.  Then  apply  the  brush  a  second  time  and  paste  the  invoice  into  the  book.  By  observing 
these  directions  a  smooth,  even  surface  will  be  secured.  The  paper  would  shrink  if  jiasted 
in  at  first.     Care  should  be  taken  to  apply  as  little  mucilage  as  possible. 

No.  104. — Go  over  the  calculations  of  tliis  bill  and  make  sure  that  no  error  exists.  Take 
your  Invoice  Book  and  see  whether  the  bill  fits  in  the  space  intended  for  it  in  the  book;  if 
not,  trim  it  to  the  proper  size.  Apply  a  very  small  (juantity  of  mucilage  to  the  back  of  the 
bill  (on  the  lower  edge)  and  let  it  dry.  Apply  the  mucilage  a  second  time,  being  careful  not 
to  use  too  much.  Place  the  bill  in  the  ]>ro[ier  i)osition,  even  with  the  upper  edge  of  the  first 
page  of  the  Invoice  Book.  Extend  the  total  amount  of  the  ])urchaso  directly  oi)posite  where 
the  firm's  name  apjiears.  {See  illustration  on  opposite  page.)  Be  sure  to  do  this  with  each 
and  every  bill. 

Mauch  3,  189-. 

No.  105 — Bill  the  goods  called  for  in  this  order.  Go  over  your  calculations.  Enter  in 
the  j)roper  book  and  be  sure  to  place  the  terms  correctly,  both  in  the  book  and  on  the  bill. 
Always  apply  rules  1  and  2  for  debiting  and  crediting  when  no  others  are  given.  Have  you 
filed  the  order? 

No.  106. — Bill  and  enter  this  order  in  the  proper  book  and  place  the  order  on  file.    Place 
the  terms  asked  for  in  the  order  on  the  bill. 

No.  107. — This  draft  is  in  settlement  of  the  amount  the  drawer  owes  the  business.  Turn 
to  your  Ledger  and  ascertain  if  the  amount  is  correct.  When  is  the  amount  to  be  paid  to 
the  business?  Is  it  an  order  to  pay  or  a  promise  to  i)ay?  Read  rules  17  aiid  16  and  make 
the  entry.  In  wiiat  book  is  it  nuidc?  The  word  "Accepted,"  etc.,  with  the  party's  oignature 
is  equal  to  his  signing  his  name  to  a  promissory  note,  as  thereby  he  promises  to  pay  you  a 
sum  of  money  on  a  certain  date  as  absoluteli'  as  if  he  had  given  you  his  note. 


68 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


March  5,  1S9-. 

No.  108. — Tliis  cash  is  thf  miKiuiit  of  the  retail  sales  for  the  week.  Kntcr  in  the  proper 
book  and  place  the  cash  in  tlie  Cash  Drawer. 

No.  1(H>. — This  check  is  in  settlement  of  account.  The  party  signing  the  check  lias 
taken  advantage  of  the  discount  allowed  for  prompt  payment.  Turn  to  your  Sales  Book, 
find  the  amount  of  his  purchases,  then  take  X'^  of  that  amount  and  subtract  to  see  if  it 
equals  the  amount  called  foi"  in  the  check.  If  found  to  agree,  make  the  entry  as  follows  on 
the  proper  side  of  the  Cash  Book. 

!      I   I 


^ 


/^p- 


In  case  your  Cash  Book  does  not  contain  the  rulings  for  the  discount,  you  w  ill  rule  the 
columns  the  same  as  illustrated  above.  In  jiosting  items  tiiat  contain  discounts,  observe  the 
special  instructions  tliat  will  be  given.     Place  the  check  in  the  Cash  Drawer. 

March  G,  189-. 

No.  no. —  Go  over  the  calculations  of  this  bill.  If  found  correct,  prepare  for  pasting 
into  the  Invoice  Book  by  applying  a  very  small  quantity  of  mucilage  on  the  lower  edge  of 
the  back  of  the  bill.  Let  it  dry,  then  apply  another  small  quantity  and  paste  the  bill  so 
that  it  will  cover  the  first  bill  up  to  the  double  ruling  that  divides  the  heading  from  the 
body  of  the  bill.  i^See  illustration,  page  67.)  See  that  the  right-hand  edge  of  the  bill  is 
jiarallel  with  the  first  ruling  of  the  money  column.  Extend  the  amount  directly  opposite 
the  firm's  name  on  the  bill. 

No.  111. — Pay  Barlow,  Henderson  Co.  by  check  the  amount  the  business  owes  them. 
Make  the  entry.  In  business  it  is  not  customary  to  make  an  entry  for  a  check  when  it  is 
issued,  but  to  leave  it  until  the  close  of  the  day  or  the  beginning  of  the  next  day,  when  all  the 
checks  issued  for  the  day  are  entered  at  once  from  the  stubs.  Therefore  it  is  very  important 
that  a  complete  record  be  made  on  the  stub,  before  the  check  is  issued. 

Eii^htli  Koport.  Make  a  rei)ort  and  hand  same  together  with  the  vouchers  and  cash 
for  otiiers  to  the  teacher.  Have  your  cash,  journal,  and  sales  book  sheets  aiqiroved  and  copy 
them  neatly  into  your  regular  books.  Prove  your  cash  to  ascertain  whether  the  amount  called 
for  by  the  Cash  Book  agrees  with  the  amount  you  have  in  bank  and  in  the  C'ash  Drawer. 

Posting.     Ojien  accounts  with  the  following:    0>"'  ""'"<" on  tlie  20th  line  of 

page  1;  Real  Estate  on  page  (i,  and  C.  R.  Danenliower  ct  Son,  1201  Broadway,  City,  on 
page  18.  Post  from  tlie  Sales  Book  first,  debiting  each  person  to  whom  you  have  made  a 
sale.  Do  not  forget  to  postmark  in  the  Sales  Book.  Place  the  letter '•  S"  in  the  explana- 
tion column  of  the  accounts  to  which  jiostings  are  made  from  the  Sales  Book.  Do  not  credit 
Merchandise  for  the  total  until  the  end  of  the  month. 

Post  from  the  Invoice  Book,  crediting  each  jiarty  from  whom  you  hare  purchased.  Do 
not  forget  to  jiostmark  on  each  bill  directly  ojiposite  the  extension.  {Sec  i/liistrdlioii,  page  67.) 
Place  the  letter  "'I"  in  the  explanation  column  of  all  accounts  that  have  received  jiostings 
from  tiic  Invoice  Book.     Next  post  from  the  Journal,  following  ])revious  instructions. 


OFFICE    ROUTINE    AND    BOOKKEEPING.  69 

Post  from  your  Cash  Book  as  previously  instructed.  When  you  come  to  A.  P.  Batson's 
account,  credit  him  with  cash  received,  $2197.41,  using  tlie  letter  "  0  "  as  explanation.  On 
the  next  line  below  credit  him  for  discount,  $44.85,  using  the  term  "  Dis't"  as  explanation. 
This  is  the  best  method  of  handling  merchandise  discounts,  as  every  account  shows  how 
much  discount  was  allowed  to  it  or  received  from  it  by  the  business. 

Note. — If  we  were  to  treat  this  entry  as  it  is  often  treated  by  some  business  houses  and  authors  on  boolj- 
keeping;  i.  e.,  credit  Mr.  Batson  for  $2242.26,  the  amount  he  owes  tlie  business,  and  debit  JIdse.  Discount 
for  $44.85,  we  would  malse  a  record  that  would  not  be  strictly  true.  Were  we  to  post  the  $3242.20  to  Mr. 
Batson's  account,  it  would  appear  that  he  had  paid  us  that  amount  and  that  no  discount  was  allowed. 

Check  over  vour  posting. 

March  7,  1S9-. 

No.  113. — Verify  the  calculations  of  this  bill  and  0.  K.  same,  if  found  correct.  Paste 
it  into  the  Invoice  Book,  as  jn-eviously  instructed.  Cover  the  second  bill  as  far  as  the  double 
ruling  which  divides  the  heading  from  the  body  of  the  bill.  {See  illuslration,  parje  67.) 
Extend  the  amount  directly  opposite  the  party's  name  on  the  bill. 

No.  113. — Bill  and  enter  this  order,  being  careful  to  jilace  the  terms  asked  for  on  the 
bill.     Make  the  entry,  file  the  order  and  place  the  bill  in  the  proper  receptacle. 

No.  114. — Turn  to  T.  A.  Cooke's  account  in  the  Ledger  and  ascertain  the  amount  he 
owes  the  business.  He  has  consented  to  honor  our  drafts  so  long  as  he  owes  the  business. 
Draw  on  him  at  sight  for  the  amount  he  owes  the  business,  making  it  payable  to  J.  J.  Disos- 
way  &  Co.  Debit  the  party  who  receives  the  value  and  credit  the  jiarty  who  supplies  the 
value.     Place  the  draft  in  Vouchers  for  Others. 

March  9,  189-. 

No.  115. — Bill  and  enter  this  order,  placing  the  terms  asked  for  on  the  bill.  Have  you 
filed  the  order  and  placed  the  bill  in  the  proper  receptacle? 

No.  116. — This  written  promise  to  pay  the  business  a  certain  sum  of  money  is  to  apply 
on  account.  Why  is  it  i)ayable  to  the  business?  Debit — Rule  17 ;  credit — Enle  16.  Be 
sure  to  credit  the  party  who  ordered  this  draft  payable  to  the  business,  as  he  is  tlie  one  who 
owes  the  business.  Have  you  written  the  proper  explanation?  Consult  your  teacher  when- 
ever in  doubt  as  to  what  the  proper  explanation  should  be,  as  that  is  a  very  important  ^lart 
of  the  entry.     Place  the  draft  in  the  Casli  Drawer. 

March  10,  189- 

No.  117. —  0.  K.  this  bill  if  the  extensions  are  correct  and  paste  it  into  the  Invoice 
Book.      Follow  previous  instructions  in  detail.      Have  you  extended  the  amount  directly 

opposite  the  firm's  name? 

March  11,  189-. 

No.  118. — Bill  and  enter  this  order,  being  careful  that  the  terms  and  calculations  are 
correct.  Make  out  a  set  of  shipping  receipts  and  take  them  to  the  freight  agent  or  teaclier 
and  have  him  receipt  same.  Enclose  the  original  with  the  bill  in  a  properly  addressed 
envelojie.     File  the  order. 

No.  119.— Accept  this  draft  in  red  ink.    Write  "Accepted  payable  at  City  Bank,  March 

11,  189-,  C.  W.  Hammond  &  Co.,  per  (yo"':.°a"ie| "     Make  this  entry,  applying 

the  instructions  given  in  paragraph  "e"  under  drafts,  page  52.     Place  tlie  acceptance  in 
Vouchers  for  Others.     Have  you  written  the  proper  explanation  for  this  entry? 


70  OFFICE    ROUTINE    AND    BOOKKEEPING. 

March  12,  189-. 

No.  120. — Cash  sales  for  the  week.     Count  the  cash  and  make  the  entry. 

No.  Itil. — .Make  a  deposit  of  all  checks  and  currency  on  hand.  Be  sure  that  you  have 
endorsed  all  the  checks  projjcrly. 

No.  122.— Pay  C.  K.  Danenhower  &  Son's  bill  liy  clicck  less  the  discount  allowed  for 
proinjit  iiaynient.  Turn  to  their  hill  in  the  Invoice  Book  and  ascertain  what  the  terms  and 
rate  of  discount  are.  Calculate  the  discount  and  deduct  it  from  the  amount  of  the  bill. 
Write  a  check  for  the  net  amount,  being  sure  to  explain  on  the  stub  tliat  a  discount  was 
allowed.  Make  an  entry  similar  to  the  entry  made  wlien  the  business  received  a  check  less 
discount,  from  A.  P.  Batson.     Why  is  this  entry  made  on  the  credit  side  of  the  Cash  Book? 

JIakih  13,  189-. 

No.  123. — Bill  and  enter  this  order,  placing  the  terms  asked  for  on  the  hill.  Place  all 
vouchers  in  the  proper  receptacles. 

No.  124. — Accej)!  this  draft,  following  instructions  for  Xo.  119.  Have  you  made  the 
proper  explanation  for  this  entry?     Place  the  acceptance  in  Vouchers  for  Others. 

Niiitli  Keport.  Make  a  re])ort  and  liand  all  vouchers  and  cash  for  others  to  the  teacher. 
Have  your  woik  on  the  journal  sheets  examined  and  coin'  same  into  your  regular  books. 
Prove  ca.sh  to  ascertain  if  the  balance  as  shown  by  the  (Jash  Book  agrees  with  the  actual 
balance  on  hand. 

I'ostiiia:.  Open  the  following  accounts:  C.  W.  Jefferson,  5.")1  Fourth  Ave.,  City,  on  the 
14th  line  of  page  18,  and  White  Star  Mills,  City,  on  the  29th  line  of  the  same  page. 

(1)  Post  from  the  Sales  Book. 

(2)  Post  from  the  Invoice  Book. 

(3)  Post  from  the  Journal. 

(4)  Post  from  the  Cash  Book.  Wlien  you  post  the  entry  on  the  credit  side  apply  the 
instructions  given  for  Mr.  Batson 's  account  in  your  previous  jiosting,  being  careful  tliat  you 
post  to  the  debit  of  C.  K.  Danenhower  &  Son's  account  instead  of  the  credit.  Have  you 
placed  the  initials  of  the  books  from  which  you  posted  in  the  explanation  column  of  the 
ledger  accounts? 

Check  over  vour  posting. 

Makcu  14,  189-. 

No.  125. — Verify  tlic  extensions  of  tliis  bill,  0.  K.  it  if  found  correct,  and  enter  in  the 
Invoice  Book.     Have  you  extended  the  amount  directly  opposite  the  firm's  name? 

No.  126. — Bill  and  enter  this  order.  Make  out  a  set  of  shipping  receipts  and  have  the 
freight  agent  receipt  for  the  goods.  Enclose  the  original  with  the  bill  in  a  properly  addressed 
envelope.     File  the  order. 

Makch   15,   1S9-. 

No.  127. — Pay  Ijcrch  Bros,  by  check  the  amount  the  business  owes  them  and  make  the 
entry. 

Makcii   1G,  189-. 

No.  12S. — Ascertain  frnni  the  Ledger  the  amount  Frey  &  Thomas  owe  the  business. 
They  have  consented  to  honor  our  draft  for  tliat  amount.  Draw  a  draft  at  ten  days'  sight, 
making  it  payable  to  Ballard  &  Ballard  Co.,  whom  the  business  owes.  Debit  the  ]nirty  who 
receives  tlic  value  and  credit  the  party  who  sujjplies  the  value.  Place  the  draft  in  the  proper 
receptacle. 


office  routine  and  bookkeeping.  71 

March  17,  189-. 

No.  129.— N"ote  favor  of  J.  J.  Disosway  &  Co.  for  $1250  made  payable  at  your  bank  is 
due  to-day.  As  it  is  made  payable  at  City  Bauk  it  is  paid  out  of  the  firm's  deposit  and 
charged  to  the  firm  the  same  as  when  the  bank  pays  the  firm's  checks.  At  the  end  of  the 
month  when  your  pass  book  is  written  up  it  will  be  returned  to  you  with  the  checks.  To 
keep  your  check  book  balance  even  with  your  bank  balance  it  will  be  necessary  for  you  to 
deduct  the  amount,and  write  an  exjilanatiou.  On  the  left-hand  stub  write  "March  17,  189-. 
Bank  ])aid  note  favor  J.  J.  Disosway  &  Co.,  $1350.00."  On  the  right-liand  stub  deduct  the 
amount  from  the  last  balance.  Make  the  entry  on  the  credit  side  of  the  Cash  Book,  apply- 
ing rules  19  and  4-     Why? 

Note. — In  many  places  the  banks  require  their  depositors  to  pay  notes  made  payable  at  the  bank  by 
check.  When  this  is  done  the  notes  are  cancelled  and  delivered  to  the  depositor  at  the  time  they  are  paid 
instead  of  holding  them  until  the  pass  book  is  written  up.  In  that  case  the  stub  of  the  check  takes  the 
place  of  the  detailed  record  explained  above,  f'ollow  the  instructions  as  given  above  unless  otherwise 
directed  by  the  teacher. 

March  IS,  1S9-. 

No.  130. — -Verify  the  calculations  and  0.  K.  this  bill.  Paste  into  the  Invoice  Book, 
following  previous  instructions.  Do  not  forget  to  extend  the  amount  directly  opposite  the 
firm's  name  every  time  you  paste  a  bill  into  the  Invoice  Book. 

No.  131. — Pay  Kenaker  &  Heinrich  by  check  the  amount  tlie  business  owes  them  and 
make  the  entry. 

March  19,  189-. 

No.  132. — Amount  received  for  cash  sales  during  the  past  week.  Do  not  forget  to  make 
the  entry. 

March  20,  189-. 

No.  133. — This  check  is  to  apply  on  account.  Make  the  entry  and  2)lace  the  check  in 
the  Cash  Drawer. 

No.  131. — This  check  is  in  full  settlement  of  account. 

No.  135. — Deposit  all  checks  and  currency  on  hand.  Do  not  fail  to  endorse  the  checks 
properly. 

March  21,  189-. 

No.  136. — Turn  to  Coyle,  McCandlish  &  Co.'s  bill  in  the  Invoice  Book  and  ascertain 
the  terms  and  rates  of  discount  allowed  when  prompt  payment  is  made.  Calculate  the  dis- 
count and  deduct  from  tlie  amount  of  the  bill.  Write  a  clieck  for  the  net  amount,  being 
certain  that  you  make  a  proper  record  of  the  discount  on  the  stub,  so  that  you  will  be  able 
to  make  a  proper  record  therefrom  in  the  Cash  Book.  This  entry  is  similar  to  entry  for 
No.  122. 

March  22,  1S9-. 

No.  137. — Go  over  the  calculations  of  this  bill  and  0.  K.  same  if  found  correct.  Note 
the  terms  of  the  bill;  also  tlie  discount  allowed.  Although  the  terms  tire  cash,  do  not  pay 
it  until  instructed.  In  business  the  term  "Cash"  is  frequently  construed  as  meaning  any 
time  within  ten  daj's.  This  lapse  of  time  enables  the  purchaser  to  receive  the  goods  before 
paying  for  them.  Enter  as  previously  instructed,  extending  the  amount  of  the  bill  directly 
opposite  the  party's  name. 


•  -  OFFICE    ROUTINE    AND    liOOKKEEPING. 

MaKCH   23,    189-. 

No.  138. — Pay  ^-  ^^  'l*-  "-^  Son  bj'  check  the  amount  tlie  business  owes  them  and  make 
tlie  entry.     Write  them  a  letter  similar  to  the  following: 

(T'^r..Pf9^}. ,  Mar.  23,  1S9-. 

V.  Wn/r  d-  Son, 

Philadelphia,  Pa. 

Gentlemen, — 

Enclosed  find  our  check  for  S555.35,  in  full  settlement  of  account.     Please  acknowl- 
edge same. 

Yours  truly. 

C.  W.  Hammond  &  Co., 

Enclose  the  check  and  letter  in  a  properly  addressed  envelope  and  place  it  in  Vouchers 
for  Others. 

No.  131). — Pay  Edward  P.  Genung's  bill  of  yesterday  by  check  and  make  the  projier  entry. 

March  24,  189-. 

No.  1+0. — Ilainniond  &  Co.  desire  to  buy  stock  in  a  corporation,  and  not  having  the 
required  amount  of  cash  on  hand  (in  bank),  they  wish  to  have  the  firm's  note  discounted  at 
the  bank.  Write  a  note  for  $1000.00  at  30  days,  making  it  payable  to  the  City  Bank.  Cal- 
culate the  discount  at  6^  for  30  days.  Take  it  to  the  bank  and  state  what  the  discount 
amounts  to  and  see  tiiat  you  receive  proper  credit  for  the  proceeds.  On  the  left-hand  stub 
of  the  Check  Book  make  a  record  of  the  transaction.  For  details  see  No.  74.  Add  the 
proceeds  to  the  amount  in  bank.  Make  the  entry  in  the  Casli  Book,  debiting  according  to 
rule  3  and  crediting  according  to  rule  £0  for  the  face  of  the  note.  On  the  credit  side  of  the 
Cash  Book  make  the  usual  entry  for  the  discount.  Have  you  written  the  proper  explanation 
for  these  entries? 

No.  141. — Read  this  certificate  of  stock  carefully.  It  has  been  purchased  at  par  (face 
value).  Writeaclieck  for  same,  making  it  ])ayablc  to  tlie  Worcester  Coal  Co.  This  is  a 
kind  of  i)roperty  different  from  the  commodities  you  are  dealing  in  as  a  business,  and  it 
would  not  be  i)roper  to  charge  it  to  Merchandise.  Apply  the  General  Rules  for  debiting  and 
crediting  and  debit  AVorcester  Coal  Co.  Stock.     File  the  certificate  on  the  Voucher  File. 

Mauch  25,  189-. 

No.  142. — The  goods  called  for  in  this  order  have  been  sent.  Bill,  enter  and  file  all  the 
papers  projierly. 

No.  143. — In  payment  of  No.  142  less  discount.  See  the  rate  of  discount  in  the  Sales 
Book  and  go  over  the  calculations  to  see  that  no  errors  were  made.     Enter  similar  to  No.  109. 

No.   144. — Deposit  all  checks  and  currency  on  hand.     Endorse  the  checks  properly. 

No.  14.J. — To  get  the  benefit  of  the  discount,  you  will  j)rcpay  the  draft  favor  of  Tlios. 
W.  Dryden  accepted  on  tlic  13th  inst.  Ascertain  the  number  of  days  it  lias  to  run  until  due, 
and  find  the  discount  for  that  number  of  days.  Write  a  check  for  the  proceeds,  making 
it  payable  to  tiie  holders  of  the  draft.  Take  the  check  to  your  teacher  and  you  will  receive 
the  draft  properly  endorsed.  Do  not  fail  to  debit  the  draft  for  the  full  amount  (face  value), 
and  credit  Discount  on  the  ojiposite  side  of  the  Cash  Book.    File  the  draft  on  the  Voucher  File. 


OFFICE    ROUTINE    AND    BOOKKEEPING.  78 

Tenth  Koport.  Mnke  a  report  and  hand  in  the  cash  and  vouchers  for  others.  Have 
your  work  on  tlie  journal  sheets  approved,  and  copy  same  neatly  into  your  regular  books. 
Prove  your  cash  to  ascertain  whether  the  balance  as  shown  by  the  Cash  Book  agrees  with 
the  balance  on  hand. 

Posting.  Open  accounts  as  follows:  Worcester  Coal  Co.  Stock  on  the  14th  line  of 
page  C;  Dennis  &  Herring,  AVest  Washington  Market,  City,  on  the  14th  line  of  page  11; 
Coyle,  McCandlish  &  Co.,  615  Market  St.,  City,  on  page  19,  and  Edward  P.  Genung,  283 
Washington  St.,  City,  on  the  14tli  line  of  the  same  page.  Post  all  books  in  the  order 
previously  indicated.  Always  refer  to  previous  instructions  when  in  doubt  how  to  proceed. 
Cheek  over  your  posting  in  pencil. 

March  26,  180-. 

No.  146. — Go  over  the  calculations  of  the  bill  and  if  found  correct  0.  K.  it  and  enter 
in  the  proper  book. 

No.  147. — For  cash  sales  of  retail  department.     Make  the  entry  in  the  proper  book. 

No.  148. — Take  draft  favor  of  Harry  Powell  and  accepted  by  E.  K.  Shoop  from  your 
Cash  Drawer,  and  have  same  discounted  atbank.  Ascertain  the  number  of  days  it  has  to 
run.  Calculate  the  discount.  Endorse  the  draft.  See  that  you  receive  proper  credit  in 
your  Pass  Book.  Make  the  usual  record  on  the  left-hand  stub  of  the  Check  Book  and  add 
the  proceeds  to  the  balance  in  bank.  Credit  the  draft  for  the  full  amount  and  be  sure  to 
debit  Interest  &  Discount  on  the  opposite  side  of  the  Cash  Book.  Refer  to  rules  3,  18,  4 
and  21  if  you  experience  any  difficulty  with  this  entry. 

No.  149. — The  firm's  acceptance  favor  J.  J.  Disosway  &  Co.,  made  payalile  at  City  Bank 
is  due  to-day.  The  bank  has  paid  same  out  of  the  firm's  deposit,  and  will  return  it  to  you, 
with  the  checks  paid,  at  the  time  your  Pass  Book  is  written  up.  To  keep  your  Check  Book 
balance  and  bank  balance  alike  you  will  deduct  the  amount  from  the  last  balance  on  the 
Check  Book  stub.     Make  the  usual  record  on  the  left-hand  stub.     (See  No.  129.) 

March  27,  189-. 

No.  150. — Bill  and  enter  goods  called  for  in  this  order  as  per  terms  written  on  the  order 
by  Mr.  Hammond.  Always  verify  your  calculations  and  file  all  papers  before  taking  up  the 
next  transaction. 

No.  151. — Draw  a  draft  at  sight  on  A.  J.  Gouley,  Louisville,  for  the  amount  he  owed 
the  business  on  the  first  day  of  the  month.  Make  tiie  draft  payable  to  ''Ourselves"  and 
endorse  it  as  you  endorse  a  check  for  deposit,  and  leave  it  at  the  bank  for  collection.  No 
record  will  be  necessary  except  the  record  on  the  draft  book  stub,  although  it  is  the  custom 
of  some  banks  to  give  credit  "in  short"  for  all  paper  left  for  collection. 

March  28,  189-. 

No.  152. — Make  out  the  bill  for  this  order,  taking  off  the  discount  asked.  This  bill  will 
be  made  out  similar  to  bill  No.  137  in  the  Invoice  Book.  Make  the  record  in  the  Sales  Book 
similar  to  the  bill.     File  the  order  and  place  the  bill  where  it  belongs. 

No.  153. — In  payment  of  No.  153.     Make  the  entry. 

No.  154. — Bill  and  enter  on  the  same  terms  as  their  previous  order.  Verify  the  calcu- 
lations and  file  all  papers. 


74  OFFICE    P.'-jCTTNE    AND    BOOKKEEPING. 

^o.   loo. — In  paVTiient  of  Nvs.  i-y'!  an^i  i.j-i,  iL-M  LCt-  discoant  allotr 
ment.     C;ilcalate  the  discoant  to  see  that  yoa  are.  receiving  the  projier  a:.  - 

the  diacoant  ia  deducted.  Make  the  entry  sinular  to  No.  143.  Are  yon  tiiing  aii  ine  paper? 
received  and  issuoi?     This  is  very  important. 

March  30,  1S9-. 

No.  156. — DLiCoant  at  the  bank  A.  P.  Batsons  draft,  accepted  by  Martin  Schwartz. 
Calculate  the  discount  for  the  unerpired  time  and  endorse  the  draft.    Take  it  :  k 

and  receive  proper  credit.  Make  the  usaal  detailed  record  on  the  left-hand  ii-  .:  ;„e 
Check  Book  and  add  the  proceeds  to  the  amount  in  bank.  (See  So.  1^.)  Make  the  entrv 
from  the  stub  of  the  Check  Book,  crediting  the  note  for  the  full  amoaat  and  debiting  Interest 
4  Discount  for  the  discount  allowed. 

No.  157. — Prepay  the  note  favor  Ballard  &  Ballard  Co.  to  take  advantage  of  the  discount 
allowed  when  payment  is  made  before  the  note  is  due.  After  calcolating  the  discoant  for 
the  unexpired  time,  write  a  check  for  the  pnx-eeds,  making  it  payable  to  the  holders  of 
the  note.  Take  the  check  to  your  teacher  and  receive  the  note  properly  endorsed.  Make 
the  entry  in  the  proper  book  from  the  Check  Book  stub. 

No.  158. — Verify  the  calcolations  of  this  bill  and  enter  in  the  proper  book. 

No.  159. — Bill  the  goods  called  for  in  this  order,  deducting  the  discoant  aeked  for.  This 
entry  is  similar  to  entry  for  Xo.  152. 

No.  160. — In  payment  of  No.  159. 

March  31,  189^. 

No.  161. — Pay  Frank  Winter  175  by  check  a£  salary  for  the  month  instead  of  $60,  aa  his 

salary  has  been  increased.     Make  the  proper  record. 

No.  162. — Write  a  check  favor  C.  W.  Hammond  for  *100,  ?. .=  wants  for  private 

nse.     Do  not  forget  to  make  the  entry  as  per  rules  6  and  4- 

No.  163. — Pay  yotirself  %10Q  by  check  for  private  nse  and  make  the  entry,  applying 
rules  '■j  and  4- 

No.  164. — If  this  biU  is  correct,  pay  it  by  check  and  make  the  usual  entry. 

No.  165. — Deposit  the  cash  on  hand,  endorsing  the  checks  properly. 

No.  166. — Prepay  the  note  favor  of  City  Bank  to  take  advantage  of  the  discount  allowed 
when  payment  is  made  before  maturity.  Calculate  the  discoant  for  the  unexpired  time  and 
write  a  check  for  the  proceeds,  making  it  payable  to  '"Note  of  March  24."  Take  it  to 
the  bank  and  receive  the  note  with  the  proper  endorsement.  Make  the  entry,  debiting  the 
note  for  the  fall  amount  (face  value)  and  crediting  Cash.  Credit  Interest  &  Discoant  for 
the  amount  gained  and  debit  Cash. 

Eleventh  Report.  Make  a  report  and  hand  the  vouchers  for  others  and  cash  to  the 
teacher.  Have  your  journal  sheets  representing  yoor  books  inspected,  and  when  anproved 
copy  same  into  your  regular  books.  See  if  the  cash  book  balance  agrees  with  the  balance  on 
hand  (in  bank).  If  found  to  agree,  balance  and  rule  the  Cash  Book  in  red.  ink  and  bring 
down  the  balance  in  black  ink- 


A2rD    SOOii„i.iiPI>"'3. 


<^ 


Pi><-  -  -  --.---       -        -  -  -^  ^y^  ^^^  35iai  Ene  of 

pa^  '-■-'_'-  '  .  '  •'--  ?*==  li:  L  A.  GU.- 

eSinm.  Cisr.  etE  ps^e  1*;  Ctrrrj.  Trmrs  jfe  Xocwacd-  4—  Vt'.  Mifa  Sc_.  Ciit.  cm  lie  SSol  Ene  of 

'   ~  ^   -   '      ■        -  ,     it}.     PoK  ix.m  uLr  books  in  rfie  sisaAl  oriar  snd 

-3.  donbu  iij  u>:-  zt-i  piTjper  inciiZiod.     P':6u  zhb  uOC^ 
<E  uiifi  laiTsiee  &>ik  ia>  tte  debis of  iibe  Miise. aecGOJiiL.  ^'•'".■I'nT-  ufie  wrscd  '- Pcxciiases ~  in.  t±e 

■z-r       :^   \  "'-^^    '-  '  -' .:  of  ube-  Sales  B^ok  uo  u&e  orediu  side  cf  die  Mdie^  aeeccniL 

-5~        _  ,      ■  ^f:yr:fcr7.-in  ciji-iimjs-     Poen  iiae  :cGiI  of  uiie  i>iieotiiiJr  eolaniii 

;-  :  ace  of  lyse  CasK  B>:o«;  no  une  decn:  ef  Stise.  Ihseoiiiiis.  and  iihe  KscaJ.  ef  irrir 

'wz.  of  die  iCi=e.  Dsctctizis.     Cbrct  cts:  iie  posriiijr.  •;",-ii:  Toa  zsat 


Sti"  - "  -    ' ».    Mike  ocu  sanetniHiss  ^amsc  sll  enscode:?  'Tsrin^  nZie  feTC-     Be  sire  t35 
id  'areiiu  V3sm&  focud  :o  balaniie.     Do  ::ioi:  'iecend  enrlrtlj  cpoG:  joox  rtilinj- 

; J.  .  _iOL  aaearafninj  lie  bems  '^^~  bjiLiiJCg-.     Ki^e  jocr  sliPeniecs  acp!ro^?d  ind 

:f  lisiarL  as  ^jrervjcslj  inscmeccd. 

Trill  BaLuwe.    Pecefl  3}og  all  aeeuujiua  uiiaii'  do  n<st  baLuice  and  take  a  trial  btfaPiFy-. 
3>r  Sire  aoc  s*  Qiaii  iiae  casa  balance  rf  joir  espeec  so  Isai^ne  toot  urial  bstl^iQce  peon's. 

T    -  _  -  -  —    ^  -  •   Balaae^  Si^^t.     Make  an  In-enrorr  of  Eesc'crces  k  LFac  7  ^  : 

;_^ ; ;_  :  _  ^jotnaiii  lie  suji'ling  of  uiue  bnsniasE-    Far  acooGni:  of  progenr^ . 

aee  Inicssory  (Xtx  li5&>  Eakea.  bj  Mr.  Wmaa:  and  appEo^ed  bj  Mr:  Himmoa-i. 

T  -reiaji<i:  --  rr  ^trd  nave  same  iiror-j^r'd  before  t!?t;oeedrnj 

■r^."  -  _  ;  .-is  and  I-  -  -.     }dzsr  she  InTemrorj  of  Sesivircts  and  lia- 

Mliufes  hjg  beoi  appc^Ted.  eoQuiniie  widL  lie  B^Iazice  Shees  as  preriouslT  fnscmcced  nnsfl 


Balance  Sheec  as  siowrn  fn  uiie  for: 


•,.TT,   rmf  =  Xffl  »T?ir» 

■tewj 

1-5   4eiM 

:« 

li:^ii 

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i;^>  M> 

rr.:' 

^.-.:or.T-      -:- 

1 

5-:  --      ^    -    -    - 

11 '     Ir 

:o 

" 

12310    '» 

r  Leases  and  •iifns. 


PreseEu  aZ  bocks  ror  : 


-icC.  azoer  ■wro.on  —A;^'-  a  natu  pransiriTT 

- , . .-  -oeed  ij  close  :±e  accocns  in  're  Leix'ir 

Ai;i;It"  iie  rnaanecf'ifis  far  el"3snx  iiae  Srsi  se^  wneneTer  in  docbc 

*^i  ^00  '  ' .  ^■:!ss  as  eszilb- 

~      T^C    1£>   Sil    --  .."ieif  Trrfcr   TOE 

ipeccon. 


76  OFFICE    ROUTINE    AND    BOOKKEEPING. 

TiiK  iUsiMss  OF  C.  W.  IIammoxi)  &  Co.,  Continued. 
Aphil  1,  1S9. 

No.  167. — Mr.  Frank  AVintcr  has  dccidctl  to  purchase  an  interest  in  the  business,  and 
invests  the  amount  he  lias  on  deposit  in  the  Bank  of  Marion,  as  shown  by  this  certificate  of 
deposit,  wliieh  lie  has  endorsed  over  to  the  firm.  Read  it  carefully  and  examine  the  endorse- 
ment. Make  the  entry,  ap])lying  rules  J,  2  and  8.  Place  th<-  cirt ideate  of  deposit  iu  the 
Casli  Drawer. 

Study  form  2  in  the  aiijiendix,  then  draw  up  a  partnership  agreinuut  embodying  the 
following  points:  (1)  The  jiartnership  is  to  continue  for  five  jT?ars,  unless  sooner  dissolved 
by  consent  of  all  the  jiartners.  (2)  The  net  gain  or  loss  is  to  be  divided  equally.  (3)  Owing 
to  the  uiKMiual  iuvestments  of  the  partners,  interest  is  to  be  allowed  each  partner  on  his 
investment,  and  interest  is  to  be  charged  on  his  withdrawals.  (4)  Each  partner  is  entitled 
to  draw  §150  ])er  month.  ]\[ake  a  draft  of  your  partnership  agreement  and  submit  it  for 
inspection  before  cojiying  on  the  form  in  your  jiackagc  of  supplies.  When  it  is  copied  on 
the  form  it  should  be  signed  by  Mr.  Hammond,  yourself  and  Mr.  Winter.  (Your  teacher 
will  sign  for  Mr.  llainmoiid  and  Mr.  "Winter.)     Brief  and  file  on  the  Voucher  File. 

jfoTE. — In  l)usincs.s  three  copies  of  the  partnership  agreement  would  be  made  and  signed  by  each  of 
the  partners,  so  that  eacli  partner  would  have  a  copy. 

Using  form  Xo.  98  as  a  model,  write  a  bill  of  sale  on  practice  paper,  transferring  the  per- 
sonal property  of  the  firm  to  the  meniber.s  of  the  new  firm.  Have  it  ajiproved  before  copying 
on  the  form  furnished  in  your  supplies.  It  should  then  be  executed  by  Mr.  Hammond  and 
yourself  in  the  presence  of  a  witness.  (Your  teacher  will  sign  for  Mr.  Hammond.)  Brief 
and  file  on  the  Voucher  File. 

Using  form  No.  100  as  a  model,  write  a  warranty  deed  on  practice  paper,  making  the 
members  of  the  new  firm  the  grantees.  After  the  deed  has  been  approved,  copy  it  on  the 
regular  blank.  It  should  then  be  executed  and  acknowledged  by  ilr.  Hammond  and  your- 
self. (Your  teacher  will  sign  for  Mr.  Hammond  and  for  the  commissioner  of  deeds.)  Brief 
and  file  on  the  Voucher  File. 

No.  168. — Verify  the  calculations  of  this  bill  and  paste  it  into  the  Invoice  Book  at  the 
top  of  ]iage  4. 

No.  169. — I'ay  tliis  Ijill  by  clicck.  You  are  expected  to  file  all  papers  hereafter  and 
make  the  entry  at  the  proper  time,  as  all  instructions  regarding  same  will  be  omitted  except 
in  special  cases.  See  note  under  No.  101,  page  65. 

No.  170. — Deposit  the  certificate  of  de]iosit  after  properly  endorsing  it. 

April  2,  189-. 
No.   171. — Bill  the  goods  called  for  in  this  order  on  the  terms  asked. 

Spllinil  (ioods  on  Coniinissioii.  Many  merchants  do  not  purchase  the  goods  they 
deal  in  as  a  business,  but  act  as  the  agent  for  the  owner  of  the  goods.  They  receive  as  com- 
pensation for  their  services  a  certain  percentage  on  the  gross  sales,  called  a  commission. 
Hence  they  are  known  as  Commission  Merchants.  They  often  receive  goods  to  be  sold  from 
parties  in  other  cities,  where  there  is  no  ready  market  for  same,  as  it  is  expected  a  readier 
and  better  market  can  be  secured  in  their  localities. 


OFFICE    ROUTINE    AND    HOOK  KEEPING.  77 

No.  172. — It  has  been  arranged  by  Mr.  Hammoml  to  liavo  the  firm  sell  goods  on  commis- 
sion for  other  parties.  The  goods  called  for  by  this  invoice  of  shijiment  have  been  received 
to  bo  sold  for  the  account  and  risk  of  the  consignors,  Emmons,  Hawkins  &  Co.  Read  the 
invoice  of  shipment  carefully  and  compare  it  with  an  ordinary  hill.  Note  that  no  prices  are 
given.  The  reason  for  this  is  that  the  business  is  iu)t  jmrchasing  the  goods,  but  is  receiving 
them  to  be  sold  for  the  consignors,  and  all  that  the  business  will  receive  will  be  a  certain  per 
cent,  of  the  gross  sales,  called  a  commission.  You  make  no  entry  because  the  goods  belong 
to  the  consignors  and  not  to  C.  W.  Hammond  &  Co.  When  the  goods  are  sold,  the  amount 
received  for  them  less  the  firm's  commission  aiul  other  charges  will  be  remitted  to  the  con- 
signors.    File  the  shipping  invoice  on  the  Voucher  File. 

No.  173. — Turn  to  your  Ledger  to  ascertain  if  the  amount  called  for  by  this  statement 
agrees  with  your  records.  If  found  to  agree,  pay  same  by  check.  Write  a  letter  asking  the 
parties  to  receipt  the  statement.  Enclose  it  together  with  the  check  and  statement  in  a 
properly  addressed  envelope. 

No.  174. — Turn  to  your  Ledger  and  verify  the  correctness  of  this  statement.  If  found 
correct  proceed  as  with  No.  17.3. 

April  3,  189-. 

No.   175. — Cash  sales  for  the  week. 

No.  176. — Read  this  letter  carefully.  Not  finding  a  ready  sale  for  the  Beans  and  Peas  on 
hand,  Mr.  Hammond  has  ordered  the  quantity  desired  of  each  to  be  shipped.  Make  out  the 
shipping  invoice  similar  to  the  one  received  from  Emmons,  Hawkins  &  Co.  Enter  the  ship- 
ment in  the  Sales  Book,  making  the  extensions  at  the  current  cost  prices  as  given  in  the  March 
Inventory.  Prefix  the  word  "  Shipt."  to  the  party's  name  to  distinguish  it  from  the  sales. 
Make  out  a  set  (3)  of  shipping  receipts  and  prepay  the  freight,  which  amounts  to  $13.12  by 
check.  Take  the  check  and  Shipping  Receii)t  Book  to  the  Freight  Agent.  In  the  Cash 
Book  charge  Shipt.  Philip  Lindeman  with  the  freight.  Enclose  the  original  shipping  receipt 
with  the  shipping  invoice  in  a  properly  addressed  envelope. 

Note. — When  Philip  Lindeman  receives  this  consignment  he  makes  no  entry,  as  the  goods  belong  to 
C.  W.  Hammond  &  Co.  When  he  sells  the  goods  he  credits  C.  W.  Hammond  &  Co.'s  Consignment  for  the 
sales  and  debits  it  for  his  commission  and  the  net  proceeds.     See  No.  172  for  similar  transaction. 

No.  177. — The  draft  drawn  on  A.  J.  Gouley,  Louisville,  Ky.,  on  the  27th  ult.  has  been 
collected.  Go  to  the  bank  and  have  the  amount  placed  to  your  credit  in  your  Pass  Book. 
On  the  left-hand  stub  of  the  Check  Book  write  "Collection,  A.  J.  Gouley,  Louisville,"  and 
the  amount.  Add  the  amount  to  the  balance  in  bank  and  credit  A.  J.  Gouley  for  the  same 
in  the  Cash  Book. 

April  4,  1S9-. 

No.  178. — Read  this  order  carefully  and  examine  the  bank  draft.  Have  the  goods  been 
sent?  If  so,  bill  and  enter  the  order,  allowing  the  discount  asked  and  make  the  entry  for 
the  bank  draft.  Note  the  endorsement  on  the  back  of  the  bank  draft.  Make  out  a  set  of 
shipping  receipts  and  have  the  freight  agent  receipt  for  the  goods.  Enclose  the  original 
with  the  bill  in  a  properly  addressed  envelope. 

No.  179. — Verify  the  calculations  and  enter  in  the  proper  book. 

No.  ISO. — Pay  Curry,  Tunis  &  Norwood  by  check  the  amount  of  their  bill,  less  the  dis- 
count allowed  for  prompt  payment.  Be  sure  to  make  the  jji-oper  record  of  the  discount  in 
the  Cash  Book. 


78  OFFICE    ROUTINE    AND    BOOKKEEPING. 

April  5,  1S9-. 

Note  Ledger  or  Itill  Hook.  The  fourtli  of  the  labor  saving  books  to  be  introduced 
is  tlio  NoU'  Li'dgiT,  or  the  liills  Kcceivable  and  Bills  Payable  Book,  as  it  is  commonly  called. 
In  this  book  are  entered  all  the  notes  received  and  issued  by  the  business.  When  the  same 
are  jiaid  or  redeemed  in  any  manner,  the  record  is  made  in  this  book  from  the  Cash  Book  or 
other  posting  book,  and  no  account,  either  of  the  notes  received  or  given,  will  be  kept  in 
the  regular  Ledger  hereafter.  The  notes  received  are  posted  to  the  credit  of  the  proper 
personal  accounts  in  the  regular  Ledger,  and  those  issued  to  the  debit  of  the  proper  personal 
accounts.  For  form  of  Note  Ledger  see  the  blank  furnished  you  in  your  supplies  and  the 
illustration  given  on  opposite  page.     Study  same  carefully. 

No.  ISI. — Write  a  30-day  note  favor  of  Fred  Bowley  for  the  uinoiiiii  the  business  owes 
him,  dating  it  ilarch  30,  and  making  it  payable  at  the  City  Bank.  Make  the  entry  on  the 
Bills  Payable  side  of  the  Xote  Ledger,  filling  all  the  blanks  from  the  note,  except  the  one 
headed  "  Drawer  and  Endorser."     {Sec  oppodte  jtciye.) 

No.  1S2. — For  annual  dividend  on  25  shares  of  AVoreester  Coal  Co.  Stock.  Credit  Wor- 
cester Coal  Co.  Stock.     Why? 

No.  ISU. — In  response  to  an  inquiry  made  by  Mr.  Hammond,  the  Quaker  City  Milling 
Co.  has  quoted  the  following  price  on  Hour:  4.00  per  brl.  less  \Q%  when  cash  accompanies 
order.  Write  a  letter  ordering  200  brls.,  telling  them  you  enclose  bank  draft  in  payment 
less  the  discount  allowed.  Write  a  check  for  the  net  cost  of  the  flour,  take  it  to  the  bank 
and  receive  bank  draft  for  same.  After  endorsing  the  draft  properly  ii  made  payable  to  your 
order,  enclose  it  with  your  letter  in  a  properly  addressed  envelope.  Make  the  entry,  charging 
the  parties  who  have  received  the  value.  Why  would  it  not  be  as  well  to  send  your  check 
in  place  of  tlie  bank  draft? 

Twelfth  Report.  ^lake  a  report  and  hand  it  to  the  teacher  with  the  cash  and  vouchers 
for  otiiers.  Copy  your  bookkeeping  work  into  your  regular  books  after  it  has  been  approved. 
Post  tlic  cash  as  previously  instructed. 

Postini^.  Open  accounts  as  follows:  Frank  Winter  on  the  34tli  line  of  page  1;  Shipt. 
Philip  Liudenian,  Xew  York  City,  on  jiage  7;  Jno.  G.  Leake,  Marion,  Ky.,  on  the  14th  line 
of  page  12;  E.  Levering  &  Co.,  102  Commerce  St.,  City,  on  the  14th  line  of  page  20:  Bremer 
&  Maiiis  Co.,  1405  Main  St.,  City,  on  the  29th  line  of  page  20,  and  Quaker  City  Milling  Co., 
Philadelphia,  on  jiagc  21.  Post  your  books  in  the  order  ])reviously  indicated.  In  posting 
fi-om  the  Xotc  Ledger,  debit  Fred  Bowley  for  the  amount  of  the  note,  writing  the  word 
"  Note  "  for  explanation.  Be  sure  to  place  the  Ledger  page  in  the  proper  column  in  the 
Note  Ledger.     Check  your  posting. 

April  G,  189- 

No.  1S4. — Bill  and  enter  this  order.     Do  you  always  verify  your  resultsr 
No.  185. — Pay  C.  W.  Jefferson  by  check  the  amount  due  him  less  the  discount  allowed 
for  ])roiupt  ])ayment. 

No.   1S6. — In  lull  of  account  to  April  1st. 

No.  187. — To  ajiply  on  account.  Enter  in  the  Bills  Receivable  Book,  filling  in  the  blanks 
from  the  note  itself,  excepting  the  one  headed  "  Drawer  and  Endorser," 

April  7,  189-. 
No.  188. — Verify  the  extensions  and  enter  in  the  proper  book. 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


79 


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80  OKI-ICE    ROUTINE    AND    BOOKKEKI'INC;. 

April  8,  189-. 

>o.  1S9. — Tlie  goods  nsked  for  in  this  letter  have  been  consigned  by  Mr.  Winter  to  be 
sold  on  our  account  and  risk.  Make  out  the  invoice  of  shipment  and  enter  in  the  Sales  Book 
at  current  cost  prices  as  shown  by  the  March  Inventory,  prefixing  the  title  "Shipt."  Make 
out  the  sliipping  receipts  and  have  the  freight  agent  receipt  for  same.  Do  not  prepay  the 
freight;  it  will  be  paid  at  the  other  end  of  the  line  and  charged  to  our  consignment. 

No.  11)0. — The  goods  called  for  in  this  invoice  of  shipment  have  been  received  and  are 
to  be  sold  on  account  and  risk  of  the  shipper.  Pay  the  freight  as  per  the  freight  bill.  Sign 
and  detach  the  receipt  and  place  in  Vouchers  for  Others.  Examine  and  file  freight  bill. 
Charge  Const.  Geo.  Brown  for  the  freight. 

April  9,  189-. 

>'o.  191. — Bill  and  enter  this  order,  deducting  the  discount  asked.  Record  the  check 
in  the  projiir  book.  Make  out  a  set  of  shipjjing  receipts  and  have  the  agent  receipt  for  tlie 
goods.     Enclose  the  original  with  the  bill  to  the  party  who  gave  the  order. 

No.   192. — To  aj'ply  on  account.     Enter  similar  to  Xo.  187. 

Apuii,  10,  IS!)-. 
No.   19:J. —  Cash  sales  for  the  week. 
No.   19-1. — Verify  and  enter.     Why  is  this  bill  receipted?      Pay  the  freight. 

April  11,  189-. 
No.  195. — Bill  and  enter. 

No.  196. — Write  a  30-day  note  payable  at  City  Bank  to  balance  White  Star  Mills"  account, 
and  make  the  entry  similar  to  entry  for  No.  181. 

Aruii.  l-i.  189-. 
No.  197.— In  full  of  account. 

No.  198. — Pay  Edward  P.  (ienung's  bill  of  the  Ttii  inst.  by  check,  less  the  discount 
allowed  for  ])rompt  payment. 

No.  199. — Deposit  all  cash  items  on  hand. 

April  13,  189-. 

No.  200. — Verify  and  enter  as  usual. 

No.  eOl.— Pmv  H.  Kiiofely  &  Son's  bill  of  March  14  by  check. 

Thirteenth  Keport.  ISIake  a  report  and  have  your  journal  sheets  approved.  Copy 
Bame  into  your  regular  books.     Prove  the  cash. 

Posting.  Open  the  following  accounts:  Shipt.  R.  A.  Golden,  Louisville,  Ky.,  on  the 
14th  line  of  page  7;  Wm.  J.  Cooke,  Asheville,  X.  C,  on  the  29th  line  of  page  12;  Const.  Geo. 
Brown,  New  Orleans,  La.,  on  the  14th  line  of  pagq  21,  and  Mast,  Crowell  &  Kirkpatrick, 
City,  on  the  29th  line  of  the  same  page.     Post  as  jireviously  instructed.     Check  your  posting. 

April  14,  189-. 

No.  202. — Bill  and  enter  this  order  in  the  Journal,  at  the  price  named,  debiting  the 
party  who  receives  value  and  crediting  Emmons,  Hawkins  &  Co.'s  Const.  This  entry  is 
made  in  the  Journal  in  order  that  you  may  give  proper  credit  to  the  Consignors,  instead  of 
creditinir  the  Merchandise  account,  as  would  be  the  case  were  you  to  make  the  entry  in  the 
Sales  Book. 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


81 


Note. — In  business,  when  the  commission  sales  are  numerous,  a  Commission  Sales  Book  is  kept  for  all 
sales  on  commission.  In  the  absence  of  the  Commission  Sales  Book  a  special  column  is  used  in  the  regular 
Sales  Book  to  receive  the  sales  on  commission. 

No.  203. — In  full  payment  of  amount  due.  Bead  the  note  carefully.  What  difference 
do  you  observe  between  this  and  other  notes  that  you  have  received?  This  note  is  interest 
bearing,  and  consequently  we  gain  the  interest  that  will  accrue  by  extending  the  time,  while 
the  maker  loses  thereby  the  amount  of  the  interest. 

No.  204. — Write  a  note  favor  Mast,  Crowell  &  Kirkpatrick  in  full  of  account,  at  one 
mouth  from  date  of  their  bill,  and  make  the  proper  record. 

April  16,  189-. 
No.  205.— Bill  and  enter. 

No.  206. — Verify  the  extensions  and  enter. 

No.  207. — Invoice  of  shipment  for  merchandise  received  to  be  sold  for  the  account  and 
risk  of  the  consignor.  Make  no  entry.  Why  not?  The  merchandise  belonging  to  this  con- 
signment will  be  designated  as  Const.  No.  2  to  distinguish  it  from  a  previous  consignment 
received  from  the  same  parties. 

No.  208. — Pay  Henry  Eohner's  bill  by  check,  less  the  discount  allowed  for  prompt  pay- 
ment.    Do  not  fail  to  make  the  proper  record  of  the  discount. 

April  17,  1S9-. 

No.  209. —  Cash  sales  for  the  week. 

No.  210. — Account  Sales  and  check  for  the  net  proceeds  of  shipment  made  on  the  3d 
inst.  Credit  the  shipment  for  the  amount  of  the  check,  and,  after  examining  the  account 
sales,  carefully  file  it  on  the  Voucher  File. 

No.  211. — In  payment  of  bill  less  discount.     Verify  the  discount  calculation. 


ami   enter. 


April  18,  189-. 
Make  out  shipping   receipts,   and  proceed  as  previously 


No.  212.— Bil 
instructid. 

No.  213. — As  you  have  received  jiayment  from  Weber  &  Co.  for  the  merchandise  sold 
them  belonging  to  Emmons,  Hawkins  &  Co.'s  Const.  No.  l,you  will  render  them  an  account 
sales  and  remit  them  the  net  proceeds  after  your  charges  for  commission,  etc.,  and  the  discount 
allowed  Weber  &  Co.  for  prompt  jjayment  have  been  deducted.  Calculate  the  commission, 
etc.,  at  5^  on  the  total  sales.  Debit  Emmons,  Hawkins  &  Co.'s  Const,  for  the  total  of  com- 
mission and  merchandise  discount,  and  credit  these  accounts  for  their  respective  amounts,  ia 
the  journal.     With  the  exception  of  the  amounts,  make  the  entry  as  follows: 

18 
Emmons,  Hawkins  &  Co.'s  Const.  No.  1, 
Commission, 
Mdse.  Discts., 


5^  on  sales, 

allowed  Weber  &  Co., 


24 


15 
9 


Give  the  reasons  mentally  for  the  above  debit  and  credits.  Write  a  check  for  the  net 
proceeds  and  place  it,  with  the  account  sales,  in  an  envelope  properly  addressed.  Charge 
the  consignment  from  the  stub  of  the  Check  Book  for  the  remittance.  When  the  entries 
just  made  are  posted  the  account  should  balance. 


82  OFFICE    ROUTINE    AND    BOOKKEEPING. 

Apuil  19,   189-. 
No.  'Jl-l. — \'crify  the  extensions  and  enter. 
No.  -15. — To  apply  on  account.     Pinter  similar  to  No.  203. 

April  1*0,  1S9-. 
No.  216. — Account  sales  and  check  for  the  jiroceeds.     Verify  the  calculations  and  enter 
as  previously  instructed,  creditinji;  Shipt.  li.  A.  Golden. 

No.  217. — To  balance  account  less  discount  for  prompt  payment.     Verify  the  discount. 

April  21,  189-. 

No.  218. — Bill  anil  enter  this  order  on  the  terms  asked.  As  the  goods  sold  do  not  belong 
to  us,  do  not  credit  Merchandise,  but  credit  the  consignment  to  which  they  belong  and  debit 
the  party  wlio  gave  the  order.     In  what  book  is  this  entry  to  be  made?     Why? 

No.  219. — Write  a  GO-day  note  favor  Curry,  Tunis  &  Norwood  for  §1000  to  apply  on 
account,  and  make  the  entry  in  tlie  ])roi)er  book. 

Fourteeiilli  Report.  Make  a  report  and  hand  in  all  vouchei-s.  Have  your  work 
approved  and  copy  into  your  regular  books.     Prove  the  cash. 

Posting.  Open  accounts  as  follows:  Commission  on  the  29th  line  of  page  7;  U.  Weber 
&  Co.,  City,  on  page  13;  Chas.  Y.  Kay,  349  Main  St.,  City,  on  the  14th  line  of  page  13; 
Const.  Emmons,  Hawkins  &  Co.  No.  1,  Omaha,  Neb.,  on  page  22,  and  Henry  Rohner, 
N.  E.  Cor.  5th  &  Hace  Sts.,  City,  on  the  14th  line  of  page  22.  Post  and  check  as  previously 
instructed. 

April  22,  189-. 

No.  220. — Verify  the  calculations  and  enter. 

No.  221. — In  full,  less  the  discount  allowed  for  prompt  payment.     Verify  the  discount. 

No.  222. — Render  an  account  sales  to  Geo.  Brown  and  send  him  the  net  proceeds  by 
check.  Commission  to  be  5^  of  gross  sales.  Deduct  the  merchandise  discount  allowed 
Chas.  Y.  Kay.  In  the  Journal  debit  tiie  Const,  for  commission  and  merchandise  discounts 
and  credit  Commission  and  Mdse.  Discounts  for  their  respective  amounts. 

Write  the  check  for  the  net  jiroceeds  and  make  the  proper  record  of  same  in  the  Cash 
Book.     Place  the  check  with  the  account  sales  in  a  properly  addressed  envelope. 

April  24,  189-. 
No.  223.— Bill  and  auter. 

No.  224:. —  Ciish  sales  for  the  week. 

No.  225. — The  goods  asked  for  have  been  sent.  Make  out  the  invoice  of  shipment  but 
make  no  extensions.  Enter  in  the  Sales  Book  at  current  cost  prices  us  shown  by  the  JIarch 
Inventory,  prefixing  the  title  "Shipt."  Make  out  the  shipping  receipts  aiul  ])repay  the 
freight,  which  amounts  to  Si  18. 64,  by  check.  Have  the  freight  agent  receipt  for  same. 
Place  the  original  with  the  invoice  of  shipment  in  a  properly  addressed  envelope. 

No.  226. — Dei^osit  all  cash  on  hand. 

April  25,  189-. 
No.  227. — Verify  the  calculations  and  enter. 

No.  22S.— Write  a  30-day  note  favor  J.  J.  Disosway  &  Co.  for  $1000,  payable  at  City 
Bank  to  apply  on  account,  and  make  the  usual  entry. 


OFFICE    ROUTINE    AND    BOOKKEEPING.  83 

April  2G,  189-. 
No.  229. — To  apply  on  account.     Make  the  usual  entry. 

No.  230. — In  payment  of  note  due  to-day.  Endorse  the  note  properly  and  phice  in 
Voucliers  for  Others. 

April  27,  189-. 

No.  231. — Make  out  one  bill  for  this  order.  Charge  liim  with  the  firm's  merchandise 
in  the  Sales  Book.  For  the  merchandise  belonging  to  the  consignment,  debit  lum  in  the 
Journal  and  credit  the  consignment  (No.  2).  JIake  out  the  shipping  recei})ts  and  have  the 
freight  agent  receijit  for  same.  Enclose  tiie  original  with  the  bill  in  a  projierly  addressed 
€nvelo])e. 

No.  232. — Verify  and  euter.     This  method  of  billing  is  in  use  in  many  business  houses. 

April  28,  ISO- 
No.  233. — Make  out  an  invoice  of  shipment  for  the  goods  asked  for  in  this  letter,  as 
they  have  been  sent,  but  do  not  niake  any  extensions  on  same.  Enter  in  the  Sales  Book, 
prefixing  the  title  "Shipt.,"  and  make  the  proper  extensions  at  the  current  cost  as  shown  by 
the  March  Inventory.  Prepay  the  freight  amounting  to  $17.04  by  check.  Make  out  the 
shipping  receipts  and  have  the  freight  agent  receipt  for  same.  Enclose  the  invoice  of  ship- 
ment and  the  original  shipping  receipt  in  a  properly  addressed  envelope. 

April  20,  189-. 

No.  231. — Bender  an  account  sales  to  Emmons,  Hawkins  &  Co.  for  Const.  No.  2,  but 
do  not  send  them  the  proceeds,  as  you  have  not  received  pay  from  A.  J.  Gouley,  to  whom 
you  sold  the  goods.  In  the  Journal  charge  (debit)  the  consignment  with  the  commission 
and  net  proceeds,  and  credit  Commission  for  the  commission,  and  Emmons,  Hawkins  »&  Co., 
Principals,  for  the  net  proceeds.  The  word  Principal  is  affixed  to  their  firm  name  to  indi- 
cate that  the  firm  of  C.  W.  Hammond  &  Co.  is  bound  to  them  in  trust,  instead  of  owing 
them  a  simjile  debt.  Write  a  letter  explaining  that  the  proceeds  have  been  placed  to  their 
credit  and  that  you  will  forward  same  as  soon  as  the  goods  are  paid  for  by  the  party  to  whom 
you  sold  them.     Enclose  the  letter  with  the  account  sales  in  a  properly  addressed  envelope. 

No.  235. — Note  due  to-day  is  jiaid  by  the  City  Bank  out  of  the  firm's  deposit.  Make 
the  proper  records  on  the  stub  of  the  Check  Book  and  in  the  Cash  Book.  If  in  doubt,  refer 
to  a  previous  entry  similar  to  this  one. 

April  30,  189-. 
No.  236.— Bill  and  enter. 

No.  237.— Pay  by  check. 

No.  238. — Pay  yourself,  Mr.  Hammond  and  Mi-.  Winter  each  $150  by  check  for  private 
use. 

No.  239. — Calculate  the  interest  on  your  investment  for  30  days — the  time  it  was 
invested;  also  on  Mr.  Hammond's  and  Mr.  Winter's.  Add  the  three  interests  and  divide  the 
amount  by  three  to  find  the  average.  Observe  that  Mr.  Winter's  interest  is  as  much  below  the 
average  as  yours  and  Mr.  Hammond's  combined  are  above.  It  will  be  readily  seen  that  Mr. 
Winter  is  indebted  to  you  and  Mr.  Hammond  for  the  amount  that  his  interest  is  less  than 
the  average.  Therefore  you  will  debit  him  in  the  Journal  for  that  amount  and  credit  your- 
self and  Mr.  Hammond  for  the  amounts  above  the  average.  Be  sure  to  write  an  appropriate 
explanation  of  this  entry. 


84  OFFICE    ROUTINE   AND    BOOKKEEPING. 

No.  *-i40. — Deposit  all  cash  on  hand.     Leave  your  Pass  Book  at  bank  to  be  written  up. 

Fiftt'eiith  Report.  Make  a  report  and  hand  all  cash  and  vouchers  for  others  to  the 
teacher.  Have  your  bookkeeping  work  examined  and  approved,  after  which  copy  into  yonr 
regular  books.     Prove  the  cash,  then  balance  and  rule  the  Cash  Book. 

Posting.  Open  the  following  accounts:  Shipt.  E.  Spencer,  St.  Louis,  Mo.,  on  page  8; 
Shipt.  Bower  &  Moore,  Chicago,  111.,  on  the  14th  line  of  page  8;  Miller,  Lippincott  &  Co., 
134  S.  Front  St.,  City,  on  the  29th  line  of  page  22;  Emmons,  Hawkins  &  Co.'s  Const.  No.  2, 
Omaha,  Neb.,  on  page  23,  and  Emmons,  Hawkins  &  Co.,  Princii)als,  Omaha,  Neb.,  on  the 
14th  line  of  the  same  page.  Post  in  the  order  previously  indicated.  Post  the  last  entry  on 
each  side  of  the  Cash  Book  to  the  Note  Ledger  in  the  columns  ruled  for  that  purpose,  as  no 
account  of  either  Jiills  Receivable  or  Bills  Payalde  is  kept  in  the  regular  Ledger.  Do  not 
fail  to  post  the  totals  of  the  Jlerchandise  Discount  columns  in  the  Cash  Book  to  the  proper 
account  in  the  Ledger.  Post  the  total  jiurchases  and  sales  for  the  month  to  the  Merchandise 
account. 

StattMiients.     JIaku  out  statements  as  previously  instructed  and  have  them  approved. 

Trial  lialiiilCC. — Take  a  trial  balance  and  have  it  approved.  Be  sure  to  include  the 
cash  on  hand,  tlic  notes  on  hand,  and  the  firm's  notes  outstanding. 

Inventories  and  Balance  Sheet.  Make  the  extensions  on  the  Inventory  of  Merchan- 
dise and  other  projicrty  (No.  240«)  as  furnished  you  by  Mr.  Winter  and  have  it  approved. 
Copy  same  into  your  Journal.  Make  an  Inventory  of  Resources  and  Liabilities  and  have  it 
apjiroved.  Make  a  Balance  Sheet.  Have  it  approved  and  close  the  accounts  sliowing  losses 
and  gains. 

Present  all  books  and  your  vouchers  on  file  for  inspection  and  approval. 

QCESTION'S.  What  is  Real  Estate?  What  instrument  is  iiecessary  to  transfer  Real  Estate? 
Why  is  Real  Estate  not  kept  under  the  Mdse.  account?  Why  is  a  sci)arate  account  kept  for 
Stock  purchased  instead  of  including  it  in  Mdse?  What  is  the  object  in  allowing  a  discount 
on  bills  paid  witliin  a  certain  time?  What  advantage  is  there  in  discounting  your  note  at 
bank?  What  is  the  object  in  keejiing  the  Sales  Book?  The  Invoice  Book?  What  is  a  cer- 
tificate of  deposit?  Why  is  the  Pass  Book  more  frequently  used  by  banks  in  giving  credit 
to  depositors  for  their  deposits  than  the  certificate  of  dci)Osit?  AVhat  is  a  consignment?  To 
whom  is  a  consignment  known  as  a  sliipment?  What  is  the  object  in  shipping  goods  to  a 
Commission  ilercliant  in  another  city  to  be  sold?  What  is  an  Invoice  of  Shipment?  What 
is  the  difference  in  use  between  an  Invoice  of  Shipment  and  an  ordinary  bill?  What  is  an 
Account  Sales?  On  what  is  the  commission  always  reckoned?  What  is  meant  by  the  Net 
Proceeds?  Arc  tlie  net  proceeds  always  remitted  to  the  consignor  when  the  account  sales  is 
rendered?  Why  is  it  not  necessary  to  make  an  entrj'  when  we  receive  goods  to  be  sold  on 
commission  for  other  parties?  What  is  the  object  in  keeping  a  Note  Ledger  or  Bill  Book? 
When  is  it  customary  to  allow  partners  interest  on  their  investments  and  charge  them 
interest  on  their  withdrawals?  Give  a  good  reason  for  filing  all  the  vouchers  received  by 
the  business. 


OFFICE    ROUTINE    AND    BOOKKEEPING.  85 

The  Business  of  C.  W.  Hammond  &  Co.  Dissolved. 
May  1,  189-. 

Dissolution  of  Partnership.  You  will  now  assume  that  a  fire  has  destroyed  the 
entire  business  block  of  which  122-1"^-1:  Main  Street  is  a  part.  Your  stock  of  merchandise 
and  all  the  fixtures,  except  the  fire  proof  safe  and  its  contents,  have  been  consumed.  Owing, 
either  to  negligence  or  imprudence,  you  and  your  partners  failed  to  carry  insurance  on  your 
property,  and  consequently  will  have  to  bear  the  loss. 

Mr.  Hammond  has  been  offered  the  management  of  the  City  Grocery  Company  at  a  good 
salary  and  has  decided  to  discontinue  business.  The  Tropical  Fruit  Company  have  made 
Mr.  Winter  a  very  flattering  offer  to  go  to  South  America  as  their  purchasing  agent.  Glad 
to  avail  himself  of  the  opportunity  to  travel,  lie  has  decided  to  accept,  if  you  and  Mr.  Ham- 
mond will  agi'ee  to  discontinue  the  business  or  purchase  his  interest. 

J.  D.  Creager,  doing  business  as  a  retail  grocer  at  228  Walnut  St..  is  desirous  of  increasing 
his  business;  with  that  end  in  view  he  makes  you  a  proposition  to  take  you  into  partnership 
and  open  a  larger  and  better  store  at  620-623  Broadway. 

Yovi  and  your  parttiers  meet  and  confer.  They  ])ropose  that  as  you  are  thinking  of  con- 
tinuing as  a  merchant,  you  would  better  attend  to  the  closing  up  of  the  late  business.  Mr. 
Hammond  proposes  to  accept  as  his  share  of  the  remaining  assets  the  real  estate,  valued  at 
^3250,  and  the  25  shares  of  Worcester  Coal  Co.  stock,  valued  at  $2625,  making  a  total  of 
$5875.  Mr.  Winter  agrees  to  take  as  his  share  of  the  assets  the  two  notes  drawn  by  A.  J. 
Gouley,  for  $1000  and  S2152.08,  respectively.  You  are  to  receive  the  remainder  of  the  assets 
and  assume  all  the  liabilities.  Ascertain  from  the  Ajiril  Balance  Sheet  the  amount  of  your 
share  of  the  assets,  provided  you  accept  their  proposition. 

You  will  observe  that  your  share  of  the  remaining  assets  after  the  liabilities  have  been 
discharged  will  be  greater  in  ])ro]iortion  to  the  investments  than  either  Mr.  Hammond's  or 
Mr.  Winter's;  but  you  are  to  consider  that  you  will  be  put  to  the  trouble  of  closing  up 
the  business,  and  should  you  fail  to  collect  all  or  part  of  any  of  the  accounts  you  will  be 
the  loser. 

You  decide  to  form  the  partnership  with  J.  D.  Creager.  You,  also,  agree  to  the  terms 
proposed  by  Mr.  Winter  and  Mr.  Hammond.  Endorse  the  A.  J.  Gouley  notes  over  to  Frank 
Winter,  by  a  full  endorsement,  i.  e.,  write  "Pay  to  the  order  of  Frank  Winter,  C.  W. 

Hammond  &  Co.,  per ??°"T..P?™<'' ,"  and  ])lace  them  in  Vouchers  for  Others.    Transfer 

the  Worcester  Coal  Co.  Stock  to  Mr.  Hammond  by  assignment;  i.  e.,  fill  out  the  blank  form 
of  assignment  on  the  back  of  the  certificate,  complying  with  all  the  requirements.  Write  up 
a  quit-claim  deed,  quit-claiming  your  and  Mr.  Winter's  interests  in  the  real  estate  to  Mr. 
Hammond.  {See  form  3  in  /he  appendix.)  Make  a  copy  and  submit  your  work  for  approval 
before  copying  on  the  form  provided  in  your  supplies.  Get  your  teacher  to  sign  for  Frank 
Winter.     Place  all  papers  in  Vouchers  for  Others. 

Prepare  an  Inventory  of  the  Kesources  and  Liabilities,  which  you  are  to  submit  to  your 
future  partner,  Mr.  Creager  Have  it  approved.  Prepare  a  bill  of  sale  in  which  C.  W. 
Hammond  and  Frank  Winter  transfer  to  you  your  share  of  the  effects  as  scheduled  m  the 
Inventory  of  Kesources  and  Liabilities  you  have  just  prepared.  {See  form  4-  in  ihe  appetulix.) 
Have  it  approved  before  copying  on  the  form  furnished  you  in  your  sujjplies.  Your  teacher 
will  sign  for  your  partners.  Place  it  on  the  Voucher  File.  Endorse  the  notes  drawn  by 
Harry  Powell  and  Frey  &  Thomas,  making  them  jjayable  to  your  order.  Write  a  check 
payable  to  your  order  for  the  amount  of  cash  on  hand  but  do  not  detach  it. 


86  OFFICK    ROUTINK    AND    UOOKKEEPING. 

Closiiis:  Act'Oiiiits  Sliowiiiir  Losses  iiud  G.iiiis.  Turn  to  your  Ledger  and  close  the 
accounts  {.Mircliiiiuiisf,  Fiiriiiturc  I'i  Fixturis  and  Jiual  Estate)  affected  by  tlie  fire  into  Loss 
&  Ciuin  account.  There  are  no  inventories  of  Furniture  cS;  Fixtures  and  Jlerchandise,  as 
everytliing  belonging  to  tliese  accounts  has  been  destroyed;  the  inventory  of  Real  Estate  is 

Closiiiir  Partners*  Aecouiits.  Close  the  Inventories  of  Real  Estate  and  Worcester 
Coal  Co.  Stock  into  ilr.  Hammond's  account,  making  use  of  red  ink  and  explanations,  as 
you  do  when  closing  an  account  into  Loss  &  Gain  account.  Xext,  on  tlie  debit  side  of  his 
account,  write  "  Loss"  and  the  amount  reijuired  to  balance  his  account.  Rule  his  account 
and  transfer  tliis  l)alance  to  the  credit  of  Loss  &  Gain  account.  Xext  transfer  the  A.  J. 
Gouley  notes  from  the  Bills  Receivable  account  in  the  Xote  Ledger  to  the  debit  of  Frank 
Winter's  account.  A\'rite  in  the  N'otc  Ledger  opposite  the  respective  notes  in  red  ink, 
"Frank  Winter,  1,"  and  the  amount.  Transfer  the  total  to  the  debit  of  Frank  Winter's 
account,  writing  "A.  J.  Gouley  notes"  and  the  amount.  Transfer  the  balance  of  his  account 
to  the  Loss  &  Gain  account.  Tiie  remaining  part  of  the  Loss,  as  shown  by  the  Loss  &  Gain 
account,  you  will  now  close  into  your  account,  which  is  the  amount  you  have  lost.  Bring 
down  the  balance  of  }our  account,  which  should  be  equal  to  your  part  of  the  Resources  less 
the  Liabilities,  as  shown  by  the  Inventory  of  Resources  &  Liabilities  which  you  have  prepared. 

Notiee  of  Dissolution.  Your  relations  with  C.  W.  Hammond  and  Frank  Winter  as 
partners  arc  now  at  an  end,  and  the  law  is  that  neither  of  you  may  by  any  act  bind  the  late 
firm  as  to  any  new  transaction,  Init  this  presupposes  that  the  person  with  whom  the  trans- 
action occurs  knows  of  the  dissolution.  It  follows,  therefore,  that  notice  of  the  dissolution 
should  be  given.  It  is  customary  to  mail  a  circular  notice  to  all  persons  with  whom  the  firm 
had  any  dealings,  and  also  to  insert  a  notice  of  dissolution  in  the  advertising  columns  of  one 
of  the  local  newspa])crs  so  as  to  inform  the  general  jmblic,  although  it  is  not  necessary  to 
give  notice  of  the  dissolution  to  those  who  have  had  no  dealings  with  the  firm. 

The  following  is  a  convenient  form  for  giving  notice  of  the  dissolution,  and  may  be  sent 
to  the  persons  with  whom  (he  firm  has  been  doing  business,  or  it  may  be  published  in  the 
paper,  or  both. 

X^OTICE   OF    DiSSOLfTION. 

Notice  is  hereby  given  that  the  cojtartnership  heretofore  existing  under  the  firm  name 

of  C.  W.  Hammond  &  Co.,  at .<y9Mr..P!S9?A is  this  day  dissolved.    All  accounts  due  the 

firm  are  to  be  paid  to  .(.5'.?.\'.r..S!>P??r?. _,  and  all  liabilities  should  be  presented  to  him  for 

payment. 

Dated f.y.9.".r..?''^99\ ,  May  1,  189-. 

C.  W.   Hammoxd. 

(Your  name.) 

Frank  Wintee. 

Prepare  a  notice  similar  to  the  above  but  do  not  sign  for  your  partners.  Present  it  with 
jour  books  for  inspection. 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


87 


RETAIL  GROCERY   BUSINESS. 
MoxDAY,  May  10,  ISO-. 

The  New  Firm.  It  is  agreed  between  Mr.  Creagcr  and  yourself  that  the  firm  name 
under  which  you  arc  to  do  business  shall  be  ./.  D.  Cretujer  £  Co.  Each  partner  is  to  invest 
his  entire  Eesources,  and  the  Liabilities  of  each  are  to  be  paid  by  the  firm.  All  losses  or 
worthless  resources  are  to  be  charged  to  the  partner  investing  same.  Botli  partners  are  to 
share  gains,  losses  and  assets  equally,  and  each  partner  is  entitled  to  draw  $35  per  week  for 
private  use.  Mr.  Creagcr  will  make  all  purchases,  sell  to  customers  who  buy  for  cash,  and* 
make  all  deposits  for  the  firm.  You  are  to  keep  t-he  books  and  sell  to  persons  who  buy  on 
account.  Mr.  Creager  is  to  be  credited  for  Good  Will  for  an  amount  sufficient  to  make  his 
capital  equal  to  yours. 

By  Good  Will  is  meant  the  good  name,  the  trade,  the  acquaintance  and  the  standing 
which  J.  D.  Creager's  business  at  228  Walnut  Street  has  acquired.  The  good  will  of  some 
business  concerns  is  their  most  valuable  resource. 

No.  241. — By  this  bill  of  sale  Mr.  Creager  sells  the  entire  effects  of  his  late  business  at 
228  Walnut  Street  to  the  firm  of  J.  D.  Creager  &  Co.  Read  it  carefully,  then  draw  up  one 
transferring  your  share  of  the  effects  of  the  late  business,  122-124  Main  Street,  to  the  firm  of 
J.  D.  Creager  &  Co.  Have  your  bill  of  sale  approved.  After  folding  it  properly,  brief  both 
documents,  i.  e.,  fill  out  the  blanks  on  the  back  of  same.     Place  them  on  the  Voucher  File. 

Carefully  read  form  5  of  partnership  agreement  given  in  the  appendix,  then  draw  up  a 
partnership  agreement  between  Mr.  Creager  and  yourself,  observing  every  detail  as  given  in  the 
form.    Have  your  Partnership  Agreement  approved,  then  brief  it  and  file  on  the  Voucher  File. 

Take  Mr.  Creager's  bill  of  sale  from  the  Voucher  File  and  make  the  jsroper  records  for 
his  investment  in  the  books  as  explained  in  the  following: 

Openiug  Entries.  In  the  Cash  Book  credit  J.  D.  Creager  for  the  amount  of  cash 
invested.  (Sce/onn  of  Cash  Bool;  pages  SS  and  S9.)  In  the  Note  Ledger,  on  the  Bills  Receiv- 
able side,  on  page  2,  credit  him  in  the  "  Drawer  &  Endorser"  columiv  for  the  note  he  invests. 
Credit  him  for  the  remainder  of  his  resources  and  for  Good  Will  in  the  Journal  as  illustrated 
below.  You  are  to  determine  the  amount  of  Good  Will  by  subtracting  his  Net  Capital  from 
your  Net  Capital.     Debit  him  for  his  liabilities  as  illustrated. 

May  10,  189-. 


J.  D.  Creager  and   <y°"''.Pf'?^' commenced  business 

under  the  flim  name  of  .1.  D.  C'Feager  &  Co. 


J.  D.  Creager's  Resources  are: 
Cash,  .$2482.  40. 
J.  P.  Hinolf  9  note,  $450. 
Furniture  &  Fixtures 
Horse  &  Wagon 
U.  S.  Bonds 
.J.  D.  Tuckey 
Waverly  Hotel 
Mrs.  E.  K.  Shoop 
Mdse. 
Good  Will 

J.  D.  Creager 

His  Liabilities  are: 
J.  D.  Creager 

Curry,  Tunis  &  Norwood 
Ballard  &  Ballard  Co. 


(See  Cash  Book.) 
(See  Bill  Book.) 
on  hand 


owes  him 
per  Inventory 

owes  them 


500 

250 

2500 

20 

50 

82 

40 

16 

20 

335 

16 

902 

66 

821 

281 

50 
16 


88 


OFFICE    ROUTINE    AND    BOOKKEEPING. 
Ill  1  Ml,  Cash  Hook. 


DATE. 

1..  K. 

LEDOEK   ACCOCNTS  ASD   EXPLANATIONS. 

OENEKAl               MDSE. 

189- 
May 

11 

12 
13 

13 

25 

2 
82 

32 

32 

33 
25 

J.  D.  Croagcr,  invests 
Student, 

Ca-sli  sales  for  tlie  day 
Bills  Hcceivable,  M.  Mahoney's  note 
J.  D.  Tuckey,  in  full 

Ca-sh  sales  for  the  day 
Waverly  Hotel,  in  full 

Ciush  sales  for  the  day 
Mrs.  E.  K.  Shoop,  in  full 

Cash  sales  for  the  day 
Harry  Powell,  in  full 
Mdse,,  total  cash  sales 

Balance 

2000 
5000 

500 
42 

86 

17 

72 
710 

50 
25 
•25 

120 

145 
205 
240 

710 

S428 

(It) 

May 

7485 

70 

You  will  now  enter  the  Resources  and  Liabilities  of  3-our  late  business  as  shown  by  the 
bill  of  sale  you  executed.  Take  your  bill  of  sale  from  the  Voucher  File  and  replace  the  one 
you  have  been  using.  Observe  the  instructions  and  illustrations  given  for  entering  J.  D. 
Creager's  Resources  and  Liabilities  when  making  the  entry  for  your  investment.  Be  sure  to 
transfer  the  Bills  Receivable  on  hand  to  page  2  of  the  Note  Ledger,  crediting  yourself  in  the 
"Drawer  &  Endorser"  column  for  each  note  invested.  Likewise  transfer  the  Bills  Payable 
outstanding  to  i)age  2  of  tlie  Xote  Ledger,  charging  yourself  in  the  "  Drawer  &  Endorser" 
column  for  each  note  not  redeemed. 

No.  242. — By  this  clieck  J.  D.  Creager  turns  over  the  cash  he  invests  to  the  firm  of 
J.  D.  Creager  &  Co.  Transfer  the  check  in  your  Check  Book,  made  payable  to  your  order, 
to  the  firm  of  J.  D.  Creager  &  Co.  by  endorsing  it  in  blank.  Make  out  a  deposit  ticket, 
using  the  jiroper  form,  and  endorse  the  chocks  as  follows:     "  Pay  to  the  order  of  Farmers 

and  Mechanics  Bank,  J.  D.  Creager  &  Co.,  per fyourname' "     Enter  the  deposit  on 

the  stub  of  the  check  book  where  you  find  the  first  Farmers  and  Mechanics  Bank  check. 
Place  the  checks  and  dej)osit  ticket  in  an  envelope  and  write  J.  D.  Creager's  name  on  the 
envelope.  Mr.  Creager  will  make  this  and  all  subsequent  deposits  for  the  firm.  The  Farmers 
and  Mechanics  Bank  will  supply  the  Pass  Book;  banks  as  a  rule  supply  their  customers  with 
pass  books,  and,  if  desired,  check  books. 

Posting.  Post  the  entries  just  made,  placing  the  initial  of  the  book  from  which  you 
post  in  the  explanation  column  of  each  account  in  the  Ledger.  Be  sure  to  post  the  note 
invested  by  J.  D.  Creager  to  the  credit  of  his  account  and  the  notes  invested  by  you  to  the 
credit  of  your  account;  also  post  to  the  debit  of  your  account  all  notes  outstanding. 

In  opening  accounts  in  the  Ledger,  place  four  accounts  on  a  page,  beginning  with  the 
Proprietors'  accounts  on  page  25.  Place  all  property  and  allowance  accounts  under  this 
gi'oup.  On  page  28  begin  with  the  personal  accounts  payable  or  accounts  witii  ])ersons  to 
whom  the  business  is  indebted.  On  page  32  begin  with  the  personal  accounts  receivable  or 
accounts  with  persons  who  are  indebted  to  the  business. 


office  routine  and  bookkeeping. 
Retail  Cash  Book. 


89 


DATE. 

L.  F. 

LEDGER  ACCOUNTS   AKD   EXPLANATIONS. 

GENERAL. 

MDSE. 

EXPENSE. 

189- 

May 

10 
11 
12 

28 

2 

28 

Premium  for  insurance  5.00;  postage  2.00 

Baker's  bill  for  the  day 

One  week's  rent  in  advance,  ck.  J  1 

Apples  and  potatoes,  ck.  J  2 
J.  J.  Disosway  &  Co.,  in  full 

Dried  beef  and  peaches,  ck.  3  4 

Moving  telephone 

Baker's  bill  for  the  day 
Bills  Payable,        White  Star  Mills 
Curry,  Tunis  &  Norwood,  in  full 

Butter  and  Eggs,  ck.  J  7 

Horse  feed 

72 

500 
240 

40 

1 
18 
26 

3 

27 

50 

60 

80 

7 
30 

5 
12 

13 

25 
25 

Cheese  5.00;  apple  butter  4.00 
Expense,  total  for  week 
Mdse.,  total  cash  purchases 

44 
85 

90 

9 

44 

85 

90 

Balance  in  bank* 

*  Italics  indicate  red  ink. 

74S5 

70 

8428 

00 

In  case  you  are  unable  to  decide  under  which  division  an  account  belongs,  consult  the 
C.  W.  Hammond  &  Co.  Ledger  or  the  teacher. 

Trial  Balance.     Take  a  trial  balance  and  have  it  approved. 

Balancing  Old  Ledger.  Turn  to  Shipt.  E.  Spencer  account  in  the  C.  W.  Hammond 
&  Co.  Ledger.  Write  on  the  credit. side  in  red  ink,  Mai/  10  (with  the  year  above),  /.  D. 
Creager  £  Co.  L.,  27,  888.50.  Rule  the  account  as  heretofore  instructed,  but  do  not  bring 
the  balance  down,  as  it  is  to  be  found  in  Creager  &  Co.'s  Ledger  where  indicated  by  the  folio 
number  in  the  balancing  entry  you  have  just  made.  Continue  in  like  manner  with  all 
accounts  that  do  not  balance.  Be  sure  to  include  the  number  of  the  page  to  which  the 
account  has  been  transferred  in  your  balancing  entry  so  that  the  balance  of  tlic  account  can 
be  readily  traced  to  J.  D.  Creager  &  Co.'s  Ledger.  Balance  both  sides  of  the  C.  W.  Ham- 
mond &  Co.  Note  Ledger  as  per  above  instructions. 

Books  Used.  The  books  used  in  this  business  do  not  differ  materially  from  the  ones 
used  in  the  preceding  business,  tlie  Journal  and  Note  Ledger  being  identical  in  form. 

Cash  Book.  Labor  saving  columns  are  used  in  the  Cash  Book.  {See  illustration  of 
Cash  Book  on  pages  88  and  89.)  All  items,  the  amounts  of  which  are  placed  in  either  of  the 
Merchandise  columns  or  Expense  column,  are  short-extended,  i.  e.,  the  entries  are  written 
farther  to  the  right,  away  from  the  Ledger  folio  column,  to  indicate  that  they  are  not  to  be 
posted  as  separate  items.  In  entering  an  item,  the  amount  of  which  is  to  be  placed  in  one  of 
the  Special  Columns,  make  a  full  explanatory  record  of  same  and  omit  the  title  of  the  Ledger 
account,  as  the  heading  of  the  Special  Column  receiving  the  amount  clearly  indicates  the 
account  to  be  charged  or  credited.  At  stated  periods,  usually  once  a  month,  the  Special 
Columns  are  footed  and  the  footings  carried  to  the  General  Column,  when  the  totals  are 
posted  —  the  Mdse.  total  on  the  left  side  to  the  credit  of  Mdse.  account,  and  the  Mdse.  and 
Expense  totals  on  the  right  side  to  the  debit  side  of  the  proper  accounts. 


90 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


A]»striU-t  Sales  Book.  Insteml  of  making  a  detailed  record  of  the  sales  in  the  Sales 
Hook  as  liirctofore,  in  this  hiisiiiess  you  will  make  an  abstract  of  each  sale  from  the  Sales 
Ticket;  /.  e.,  write  the  party's  name  and  the  total  of  his  purchase,  together  with  the  number 
and  date  of  the  Sales  Ticket  from  which  the  abstract  is  made.  {See  form  of  Abstract  Sales 
Book  (jiven  bvlow.)     Instead  of  tlie  Abstract  Sales  Book,  Abstract  Sales  Sheets  are  often  used. 

AUSTKACT    SaI.KS    HooK. 


DATK. 

NO.  (11- 
SAI-K. 

1..  K. 

1W>-. 

May, 

10 

1 

2 
3 
4 
5 

11 

6 
7 
8 
9 

NAME   OK    I'l :H(  llASIiH. 


Mrs.  Paul  Frey, 
.Mrs.  Simon  Hart, 
N.  A.  Eckler, 
Wavcrly  llotd, 
DeiiQLlt's  Lunch  Hooms, 

Mrs.  G.  Brenner, 
Mrs.  Simon  Hart, 
U.  II.  Lord, 
Mrs.  Paul  Frey, 


AMOUNT 

OF 

DAII-Y 

■iM  KS. 


•2m  Broiidwav, 
114  Walnut  Si., 
06  Marshall  St., 
71  h  A  Walnut, 
9th  ct  Chestnut, 

1216  8th  St., 

53  Manhattan  St. 


2 

05 

5 

40 

2 

60 

26 

50 

7 

40 

2 

40 

1 

75 

1 

55 

1 

30 

43 


95 


00 


Sales  Tickets.  1'hc  Sales  Tickets  used  in  business  are  printed  in  duplicate  (sometimes 
in  trij)licate)  and  are  usually  bound  in  book  form.  By  the  use  of  carbon  jiaper  two  or  more 
copies  are  jiroducod  at  one  writing.  The  orii/hial  is  sent  to  the  bookkeepers  desk  to  be 
charged,  while  the  duplicate  is  delivered  with  the  goods  to  the  purchaser.  After  the  Sales 
Tickets  for  the  day  have  been  entered  in  the  Abstract  Sales  Book  or  on  the  Abstract  Sales 
Sheet  they  are  filed  in  numerical  order  so  that  reference  to  them  can  be  readilv  made. 
Various  ai>i)lianees  arc  used  in  business  houses  for  filing  sales  tickets  and  other  papers  of  a 
like  nature.     Tlic  fdllowiiig  are  forms  of  the  original -and  duplicate  forms  of  Sales  Tickets. 


■•iMTinto  11 


Am.'unI  R/./r.fJ  _ 


J.  D.  CREAQER  &  CO. 


.4^z<^ai^ 


•^^ 


J.  D.  CREAGER  &  CO. 


Namt 


'  r^-'-f  ^^•^v.r^—r    .^   -^ 'JL^ 


OltltilNAI.. 


ITIM-ICATE. 


In  the  larger  retail  Iiouscs  the  salesmen  are  designated  !)}•  nunilur.  The  salesman's  number  in  the 
above  ciuse  is  2.  In  this  business  Mr.  Creager  will  be  designated  as  salesman  number  1  and  you  as 
salesman  number  2. 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


91 


Cash  Tickets.  .For  cash  sales.  Cash  Tickets  are  used.  While  tney  differ  in  nse  they 
are  identical  in  form  to  the  Sales  Tickets,  and  are  also  printed  in  duplicate  or  trijilicate. 
The  original  is  sent  to  the  casliier's  desk  with  the  cash  received,  and  the  duplicate  is  enclosed 
with  the  purcliase.  Tlie  cashier  makes  an  abstract  on  an  Abstract  Casli  Sheet  of  tlie  differ- 
ent Cash  Tickets  for  the  day,  the  total  of  which  must  agree  with  the  actual  amount  of  cash 
received  from  Cash  Sales. 

The  cashier  reports  daily  to  tlie  bookkeeper  the  amount  of  cash  received,  and  the  result 
is  veritied  by  him  or  by  some  other  person  by  checking  tlie  Cash  Tickets  with  tlie  Abstract 
Cash  Sheet  and  .proving  the  addition.  In  this  business  ilr.  Creager  will  verify  the  cashier's 
results.  The  method  of  filing  the  Cash  Tickets  is  similar  to  that  of  filing  the  Sales  Tickets. 
Following  are  tlie  forms  of  original  and  duplicate  Casli  Tickets. 


J.  D.  CREAGER  &  CO. 


lecMTiFieo  ev 


y//a^,yr     1S9- 


Amount  Rutivtd 


r,^fi-zt^  CZZ-'C--e'-i.{^-7-' 


■^f 


J.  D.  CREAGER  &  CO. 


Amount  Rtttivfd 


■^f 


DUPLICATE. 


Advantages  of  tlie  Ticket  System.  The  Ticket  System  which  you  are  to  use  in. 
this  business  is  the  one  in  use  in  the  more  jirogressive  retail  houses;  especially  is  this  true  in 
dry  goods  establishments  and  department  stores.  It  is  a  labor  saving  method,  as  the  Tickets 
take  the  place  of  the  Order  Book,  Customers'  Ledger  and  Pass  Book.  Besides,  Pass  Books 
are  an  inconvenience,  both  to  customers  and  merchants;  but  when  they  are  not  used  the 
customers  have  no  way  of  checking  the  articles  purchased  at  the  time  of  delivery,  unless  the 
Ticket  System  be  used. 

Other  Books  Soiuetiines  Used.  In  some  retail  houses  the  Order  Book,  Accounts 
Payable  Book,  Petty  or  Customers'  Ledger  and  Main  Ledger  are  kept.  Other  books,  as  Petty. 
Cash  Book,  Receiving  Book,  Clerks'  Sales  Record,  Department  Sales  Book,  Department  Sales 
Ledger,  Abstract  Books,  etc.,  are  also  kept  in  tlie  larger  retail  houses. 

Order  Book.  The  Order  Book  used  in  most  retail  liouses  is  a  cheap,  coarse  book,  made 
usually  with  a  page  twelve  inches  long  and  five  inches  wide,  and  lies  upon  the  counter  during 
business  hours.  Goods  to  be  delivered,  that  are  paid  for  when  ordered,  are  entered  regularly 
in  the  Order  Book,  and  the  word  "  Paid"  is  written  across  the  order,  but  the  amount  is  not 
extended  into  the  outside  column.     If  not  jiaid  for,  tlie  amount  is  extended  into  the  outside 


92 


oniCIC    ROUTINE    AND    BOOKKEEPING. 


column,  and  the  items  are  entered  in  tlic  purchaser's  account  in  the  Customers'  Ledger  at 
the  close  of  the  day's  business,  or  at  sucli  other  times  as  it  may  be  convenient  to  post  from 
this  book.  At  the  close  of  the  day's  business,  or  at  the  end  of  the  month,  the  outside  money 
column  of  the  Order  Book  is  footed,  and  the  footing,  which  represents  the  credit  sales  of 
Mdse.  for  that  period,  is  jiostod  to  the  credit  of  Mdse.     (See  form  of  Order  Book  below.) 

Some  retail  houses  have  two  sets  of  Order  Books.  One  set  for  use  on  Mondays,  Wednes- 
days and  Fridays,  and  tlie  other  for  use  on  Tuesdays,  Thursdays  and  Saturdays.  AVhon  this 
is  done,  the  books  used  in  the  store  on  one  day  are  examined,  checked  and  posted  in  the 
office  on  the  next. 


Order  Book. 
Mav  2,  1S9-. 


1..  1 . 
It) 

20 

V 

Mrs.  I'mil  Frcy,                           on  ";i; 

1  Imi;  Flour, 
15  Kio  Coflee, 
i$  Oolong  Tea, 

Mrs.  Simon  Hart,                       cash, 

2  bugs  Flour, 
1  1)U.  Apples, 

1  Siigiir  Cured  Ham,  ICJ, 

T.  W.  Dryden,                            on  % 
1  bu.  Poiatocs, 
1  (io7,.  Florida  Oranges, 
];  Kio  CofTt-e, 
1  Ijiig  Flour, 

3 
R.  L.  Long,                               cash, 
25  Butter, 

1  bag  Salt, 

2  bags  Flour, 

60(i 
1.50 

1.50 

1 

1 

50 
80 
25 

2 
2 

05 

Ay 

3 

1 

•■iO 

84 

5 

1 

34 

35 
40 
80 
50 

55 

3 

50 
05, 

1         3 

55 

Customers'  Ledjicr.  The  Potty  or  Customers'  Ledger  is,  generally,  a  mcdiujn  sized 
book,  ruled  like  the  ordinary  Journal,  and  contains  accounts  with  customers  only.  The 
purcliases  and  payments  of  customers  are  entered  in  detail  in  this  book,  the  former  from  the 
Order  Book  or  Sales  Tickets,  the  latter  from  the  Cash  Book.  From  a  Ledger  kept  in  this 
way  an  itemized  statement  of  a  customer's  account  can  easily  be  made  at  any  time.  Such 
statements  arc  rendered  monthly  in  most  retail  houses  where  the  ticket  system  is  not  used. 
(Sec  form  of  Cus/omcrs'  Ledger,  page  03.) 

It  will  be  observed  that  the  left-hand  monc}'  column  is  used  for  debit  amounts,  and  the 
right-hand  money  column  for  credit  amounts.  The  items  are  short-extended  until  the  line 
is  filled,  when  the  sum  of  the  items  on  that  line  is  entered  in  the  money  column.  Two  or 
more  dates  may  be  entered  on  one  line,  thereby  economizing  space. 

As  a  iiart  of  the  accounts  of  the  business  are  kept  in  the  Customers'  Ledger,  the  balance 
of  these  accounts  must  be  carried  to  the  Trial  Balance  when  balancing  the  books.  Instead 
of  keeping  a  separate  Ledger  for  customer's  accounts,  it  is  customary  in  the  smaller  retail 
houses  to  set  aside  a  jiort  ion  of  the  regular  ledger  for  customers'  accounts  or  personal  accounts 
receivable  as  explained  at  the  foot  of  jjage  88. 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


93 


Customers'  Ledger. 
Mrs.  E.  K.  Slioop,  2635  Columbia  Ave.,  City. 


180-. 

May 

2 

Mdse  ,  per  P.  B., 

2 

28 

5 

201b.  A.  Sugar,  »^  U  lb.  C.  Fish,  •"=;  2  lb.  J.  Coffee,  ■»; 
4  1b.  Crackers,  *<> ;  5  gal.  K.  Oil,  ~^;  8  bu.  Potatoes,  3*''; 

2 
3 

01 
55 

fi 

Cash, 

5 

00 

8 

Mdse.,  per  P.  B.,  2>»;  (f))  Mdse.,  per  P.  B..  3", 

4 

37 

11 

20  lb.  G.  Suear,  l""^;  2  qt.  Oysters,  «";  1  pUg.  Pepper,  "; 
2  1b.  J.  Tea,"!'";  1  Lemon  ex.,  ";  5  1b.  Butter,  1  =  6, 

1 
3 

90 
55 

13 

Cash, 

n 

66 

16 

66 

16 

66 

The  Pass  Book.  It  is  customary  for  some  retailers,  who  do  uot  use  the  Ticket  System, 
especially  those  engaged  ia  the  grocery  or  market  business,  to  furnish  each  regular  customer 
a  pass  book,  which  is  usually  pocket  size,  and  ruled  like  the  ordinarj'  Day  Book.  {See  form 
of  Pass  Book  Mow.) 

The  book  is  footed  at  the  bottom  of  each  page,  and  the  footing  carried  forward  until  a 
payment  is  made,  when  it  is  deducted,  and  the  lialance  brought  down. 

In  case  the  credit  items  are  numerous  the  Pass  Book  is  kept  similar  to  the  Cash  Book  or  Bank 
Pass  Book;  the  debit  items  being  jilaced  on  the  left-hand  page  and  the  credit  on  the  right-hand 
page.     This  method  is  usually  employed  when  farm  products  are  exchanged  for  groceries,  etc. 

When  an  order  is  given  at  the  store  to  be  delivered,  the  pass  book  is  usually  left  with  the 
order,  and  when  the  goods  are  delivered  the  pass  book  is  returned,  with  the  proper  charges 
entered  in  it. 

When  the  items  are  entered  in  the  jiass  book  it  is  not  necessary  to  post  in  detail  in  the 
Customers'  Ledger;  the  date,  amount,  and  explanation  "per  Pass  Book"  or  "per  P.  B.," 
being  sufficient.  But  orders  are  often  received  and  charged  in  the  absence  of  the  pass  book, 
when  the  items  should,  of  course,  be  posted  in  detail  in  the  Customers'  Ledger;  and  the 
details  would  indicate  "not  on  Pass  Book.''  Then  when  the  pass  book  is  left  at  the  store 
to  be  "  written  up,"  the  bookkeeper  cojiies  from  the  Customers'  Ledger  only  the  detailed 
charges,  and  then  tests  the  footing  of  the  pass  book  with  the  footing  of  the  account  in  the 
Ledger,  which  should  agree. 

When  pass  books  are  used  no  bills  are  rendered  for  the  month,  as  the  pass  book  is  a 
statement  of  account  in  itself.  The  Jiage  of  the  customer's  account  in  the  Ledger  is  usually 
written  in  large  figures  on  the  cover  of  the  pass  book,  together  with  the  customer's  name, 
which  enables  the  bookkeeper  to  turn  to  the  customer's  account  without  consulting  the  index. 

Pass  Book. 

1  (Left  hand  pajre.)  (Rigrht  hand  page.) 


189-. 
May 


i  lb.  Java  Coffee, 
i  lb.  G.  P.  Tea, 

1  sack  Flour, 

20  lbs.  A.  Sugar, 
4i  lb.  C.  Fish, 

2  lb.  J.  Coffee, 
5  gal.  K.  Oil, 
4  lb.  Crackers, 
8  bu.  Potatoes, 

Forward, 


18 
50 
60 
95 
36 
70 
75 
40 
40 


84 


May 


Forward, 
Cash, 

Balance, 

2  Brooms, 

4  bu.  Apples, 

1  lb.  Raisins, 

1  doz.  Eggs, 

1  cake  Chocolate, 


84 
00 


84 
50 
00 
13 
23 
25 


94  Ol'l-ICE    ROUTINE    AM)     l;i  K  iK  K  l.l.l'l.NG. 

No.  343. — -Miss  Emma  Frej  has  been  engaged  as  cashier  and  stenograjjher  at  a  salary  of 
$10  per  Week.  She  lias  given  bond  for  the  faithful  performance  of  her  duties,  which  meets 
with  Mr.  Creager's  apjjroval,  and  which  you  will  also  approve.  Read  the  bond  carefully  so 
as  to  become  familiar  with  the  form,  then  fold,  brief  and  file  it. 

Miss  Frey  is  to  have  charge  of  the  cash.  She  is  to  receive  all  currency  and  checks,  pay 
out  all  currency,  and  render  a  statement  of  the  cash  received  and  paid  out,  to  the  bookkeeper 
at  the  close  of  each  day's  business. 

Xo.  244. — Read  this  lease  (Xo.  244)  carefully,  then  brief  and  file  it.  Pay  the  rent  for 
one  week  in  advance.  Write  the  check  and  place  it  in  Cash  Paid  Out.  In  this  business  do 
not  enter  checks  issued  until  instructed  at  the  close  of  the  day's  business. 

Nos.  24.5,  246,  247,  248. — Mr.  Creager  has  received  the  goods  called  for  by  these  bills. 
Go  over  the  calculations  and  if  found  correct  0.  K.  the  bills.  Enter  in  the  Invoice  Book 
beginning  on  i)age  7. 

Mr.  Creager  has  purchased  40  bu.  Potatoes  at  25(*  and  30  bu.  Apples  at  40(?  from  John 
Payne  for  cash.     Write  a  check  in  ])ayment  of  same. 

Write  a  check  making  it  payable  to  Frank  J.  Brown  in  payment  of  40  doz.  Eggs  at  15(4 
and  50  lbs.  Butter  at  20^-. 

Pay  J.  J.  Disosway  &  Co.  by  check  the  amount  due  them. 

Make  out  the  Sales  Tickets  for  tlic  orders  received  that  are  to  be  charged  on  account.  In 
business  tiie  salesman  receives  the  orders  and  makes  out  the  Sales  Tickets.  You  will  now 
perform  the  work  of  tiie  salesman  who  sells  ou  account,  and  prepare  the  Sales  Tickets  for 
the  sales  on  account  for  the  day  referring  to  the  Model  on  page  90. 

Note. — The  duplicate  Sales  Tickets  are  dispensed  with  as  they  are  not  necessary  to  illustrate  the  method 
of  keeping  the  books.     If  they  were  used  you  would  write  the  original  in  pencil  placing  a  carbon  sheet  on  ' 
the  duplicate,  then  detach  and  place  it  in  Vouchers  for  Others. 

Sales  on  Account.— (1.)  Mrs.  Paul  Frey,  200  Broadway,  1  bag  Flour,  1.50;  1  lb.  Rio 
Coffee,  30^;  i  lb.  Oolong  Tea  at  50^*. 

(2.)  Mrs.  Simon  Ilart,  114  Walnut  St.,  1  bottle  Lemon  Extract,  25(#;  2  bags  Flour  at 
$1.50;  1  bu.  Apples,  50(#;  1  Sugar  Cured  Ham,  16  lbs.,  at  lli(i(. 

(3.)  N.  A.  Eekler,  G6  Marshall  St.,  1  bu.  Potatoes,  35^;  1  doz.  Oranges,  50^;  i  doz. 
Lemons  at  40^;  1  lb.  Java  CoflFce,  35'/;  1  bag  Flour,  $1.50. 

(4.)  AVaverly  Hotel,  7th  &  Walnut  Sts.,  25  lbs.  Butter  at  22^^;  1  brl.  Gran.  Sugar,  ii8.75; 
20  lbs.  0.  Tea  at  29'/;  2  brls.  Flour  at  $4.80;  10  doz.  Eggs  at  18^. 

(5.)  Dennett's  Lunch  Rooms,  9th  &  Chestnut  Sts.,  12  lbs.  Butter  at  24^,  50  lbs.  Sugar 
at  6i(J;  12  bottles  Tomato  Sauce  at  15(*. 

Go  over  your  Sales  Tickets  to  see  that  you  have  omitted  none  of  the  details  and  that  the 
extensions  and  calculations  are  correct.  lluve  you  numbered  the  Sales  consecutively  as 
given  above  and  placed  your  number  (2)  on  each  ticket? 

Enter  tlie  Sales  in  numerical  order  in  the  Abstract  Sales  Book,  giving  the  date  and 
number  of  the  sale,  the  name  and  adilrcss  of  the  party  who  made  the  purcliase  and  the  amount 
of  the  purchase.  (See  iUKstration  of  Abstract  Sales  Book  on  page  90.)  Extend  the  total  to 
the ''Amount  of  Daily  Sales"  column.  File  the  Sales  Tickets  in  numerical  oi"der  in  the 
receptacle  furnished  you  for  that  purpose  in  your  supplies. 

NoTi;. — Your  partner  is  supposed  to  sell  to  customers  who  buy  for  cash.  He  makes  a  set  of  Cash 
Tickets  for  each  sale,  encloses  the  duplicate  with  eacli  purchase  and  sends  the  original  with  the  cash  received 
to  the  Ca-shier's  desk.  The  total  amount  of  cash  received  from  Cash  Sales  should  at  any  time  equal  the 
total  of  the  Cash  Tickets.  These  tickets  are  kept  on  file  in  numerical  order  by  the  Cashier  so  that  reference 
can  be  readily  made  to  them. 


OFFICE    ROUTINE    AND    HOOK  KEEPING.  95 

No.  240. — Cashier's  Statement.  Examine  vouclier  No.  240  carefully.  See  if  the 
additions  and  subtraction  are  correct.  Make  the  entries  therefrom  in  the  Cash  Book  as 
follows:  1.  Credit  Mdse.  for  the  cash  sales  and  place  the  amount  in  the  Mdse.  column. 
Short-extend  this  entry  to  indicate  that  it  is  not  to  be  posted  until  the  end  of  the  week. 
{For  similar  entry,  see  illustration  of  Cash  Book,  pages  88  and  89.)  3.  Credit  Bills  Rec.  in 
the  General  Column  for  tlie  amount  received  from  Harry  Powell  as  it  is  in  payment  of  note 
due  yesterday.  {See  Note  Ledger.)  3.  Credit  J.  D.  Tuckey  in  the  General  column  for  the 
amount  received.  4.  Debit  Expense  for  the  amount  paid  for  insuring  the  stock  of  mer- 
chandise, also  for  postage  and  place  the  amounts  in  the  Exjsense  column.  5.  Debit  Mdse. 
for  the  baker's  bill  and  place  the  amount  in  the  Mdse.  column.  Have  you  short-extended 
each  of  the  entries  on  the  credit  side  to  indicate  that  they  are  not  to  be  posted?  File  the 
"  statement  on  the  Voucher  File. 

From  the  stub  of  the  Check  Book  make  entries  for  all  checks  issued  to-day.  Be  sure  to 
place  the  amounts  in  the  i)roper  columns  and  short-extend  each  entry  the  amount  of  which 
is  to  be  placed  in  one  of  the  Special  columns.  Prove  cash  to  see  that  the  balance  as  shown 
by  the  Cash  Book  agrees  with  the  actual  amount  on  hand,  i.  e.,  in  bank,  and  in  safe  as 
shown  by  the  cashier's  statement.  If  found  to  agree,  present  your  Sales  Book,  Sales  Tickets 
and  Cash  Book  for  inspection.  Post  the  books.  Do  not  post  any  items-  that  appear  in  either 
of  the  Mdse.  or  Expense  columns.     Check  over  the  posting. 

Tuesday,  May  11,  189-. 

Nos.  250  and  251. — Verify  the  calculations  and  additions  of  these  bills.  Paste  them 
into  the  Invoice  Book. 

Pay  note  due  to-day  by  check.  {See  Note  Ledger.)  Take  the  check  to  the  teacher  and 
receive  the  note  properly  cancelled. 

Pay  Curry,  Tunis  &  Norwood  the  amount  due  them. 

Make  out  Sales  Tickets  for  the  following: 

Sales  on  Account.— (6.)  Mrs.  G.  Brenner,  1216  8th  St.,  1  can  Corn,  15!?;  3  doz. 
Eggs  at  17*^;  3  lbs.  Sugar  at  6|f/-;  1  bottle  Salad  Dressing,  30fS;  1  bu.  Potatoes,  40(^. 

(7.)     Mrs.  Simon  Hart,  1  lb.  Grenoble  Walnuts,  30^';  1  lb.  Cheese,  22^';  2  lbs.  Dried  Beef 
at  28^. 

(8.)     E.  H.  Lord,  53  Manhattan  St.,  2  lbs.  Java  Coffee  at  35?^;  IJ  lbs.  Butter  at  25j^'; 
5  lbs.  D.  Peaches  at  18^-;  1  bag  Salt,  60. 

(9.)     Mrs.  Paul  Frey,  2*  lbs.  Butter  at  255*;  1  bag  Salt,  6(«;  2  lbs.  Mixed  Candy  at  12^(iS; 
3  gal.  K.  Oil  at  11'/. 

(10.)  Mrs.  E.  C.  Mills,  55  Chestnut  St.,  3  bu.  Potatoes  at  40^;  1  Broom,  30'/;  1  gal. 
Vinegar,  lO^';  3  dox.  Eggs  at  llVf. 

(11.)     AVaverly  Hotel,  1  crate  Eggs,  30  doz.  at  16(#;  1  box  Oranges,  §3.95;  1  brl.  Salt,  $3.00. 

(12.)     Mrs.  S.  Eichert,  711  16th  St.,  1  brl.  Flour,  $4.85;  h  lb.  Baking  Powder  at  50'/. 

Verify  your  work.  Enter  the  Sales  Tickets  in  the  Abstract  Sales  Book  in  numerical 
order,  then  file  them  numerically  with  the  Sales  Tickets  of  yesterdaj'. 

No.  252. — Verify  the  additions  and  substraction  of  this  statement  and  make  the  entries 
in  the  Cash  Book  referring  to  previous  instructions.  Add  the  deposit  to  the  balance  in 
bank.     File  the  statement  on  the  Voucher  File. 

Enter  the  checks  issued  to-day  from  the  stub  of  the  Check  Book.  Prove  cash.  If  found 
to  agree  present  the  Casli  Book,  Sales  Book  and  Sales  Tickets  for  inspection.  Post  the 
books.     Check  over  the  posting. 


96  office  routine  and  bookkeeping. 

Wednesday,  May  12,  189-. 

Nos.  253  and  254. — Verify  tlie  calculations  and  0.  K.  these  bills  if  found  correct. 
Enter  in  the  iirojicr  honk. 

Pay  one-half  of  Invoice  No.  245  by  check. 
Pri'iiarc  Sales  Tickets  for  the  following: 

Sales  oil  Act'Oiint. — (13.)  Mrs.  Philip  Zoercher,  561  8th  St.,  1  cake  Toilet  Soap,  15{4; 
2  loaves  Bread  at  b<f;  3  lbs.  Sugar  at  G^<^;  1  lb.  0.  Tea,  50(<. 

(14.)  N.  A.  Eckler,  2  doz.  Eggs  at  IT^j*;  1  bottle  Chili  Sauce,  20(i(;  2  Lamp  Chimneys 
at  8^;  1  can  Salmon,  18(f. 

(15.)  J.  r).  Tuckey,  2026  Brandy  wine  St.,  5  lbs.  Oatmeal  at  6(#;  1  package  Toothpicks,  5<P; 
2  loaves  Broad  at  10^;  1  lb.  Ground  Pepper,  70(!':  1  bag  Salt,  6?*;  2  cans  Peaches  at  28^!*. 

(16.)  Mrs.  E.  K.  Shoop,  2G35  Columbia  Ave.,  2  lbs.  Mixed  Nuts  at  dOip;  1  doz.  Bananas, 
15^;  1  doz.  Pickles,  10/;  3  lbs.  Sugar  at  l^f. 

(17.)  Mrs.  E.  C.  Mills,  4  doz.  Eggs  at  17^/;  1  brl.  Flour,  14.75;  9  loaves  Bread  at  9jJ; 
2  lbs.  Corn  Starch  at  8(#. 

(IS.)  Waverly  Hotel,  1  bunch  Banan.as,  ^1.40;  1  box  Lemons,  $3.25;  10  lbs.  Mixed 
Candy  at  8^/;  25  lbs.  Sugar  at  m^.   1  doz.  bottles  Olives,  $6.40. 

Verify  the  calculations,  then  enter  same  in  the  Abstract  Sales  Book  as  previously 
instructed.     File  the  Sales  Tickets  in  numerical  order,  with  the  Sales  Tickets  already  filed. 

No.  255. — Verify  the  additions  and  subtraction.  Make  the  entries  as  previously 
instructed.     File  on  the  Voucher  File. 

Make  entries  from  the  stub  of  the  Check  Book  for  all  checks  issued.  Prove  cash. 
Present  books  and  Sales  Tickets  for  inspection.     Post  the  books  and  check  over  the  posting. 

Thursday,  May  13,  189-. 

Pay  note  due  to-day  by  chock      Receive  the  note  projjerly  cancelled  from  the  teacher. 
Pay  oue-lialf  of  Invoice  No.  246  by  check. 
Pay  one-third  of  Invoice  No.  247  by  check. 
Pay  one-half  of  Invoice  No.  248  by  check. 
Prepare  Sales  Tickets  for  the  following; 

Sales  on  Account.— (19.)  Mrs.  Simon  Eichert,  16  lbs.  G.  Sugar  at  6^9*:  2  lbs.  W. 
Crackers  at  VZ'l-;  1  bag  Flour,  $1.50;  3  lbs.  Currants  at  12/. 

(20.)  R.  II.  Lord,  3  cans  Peaches  at  28/;  1  case  Ajiollinaris  Water,  ^1.25;  5  doz.  Eggs 
at  16.V/;  5  lbs.  Raisins  at  12i/. 

(21.)  Mrs.  E.  C.  Mills,  2  lbs.  Oolong  Tea  at  49/;  i  lb.  Baking  Powder  at  50/;  1  bar 
Soaj),  8/;  1  bottle  Salad  Dressing,  30/. 

(22.)  Dennett's  Lunch  Rooms,  1  doz.  bottles  Mustard,  81.50;  1  doz.  Blue  Label  Catsup, 
$3.00;  1  brl.  Sugar,  $4.50. 

(23.)  Mrs.  Paul  Frey,  1  buncii  Celery,  12/;  4  lbs.  Rice  at  4A/;  2  lbs.  Mixed  Nuts  at 
20/;  1  lb.  Cheese,  22/;  1  Broom,  35/. 

(24.)  Mrs.  Simon  Hart,  3  bu.  Potatoes  at  34/;  2  loaves  Bread  at  8t*;  16  lbs.  Sugar  at 
6i/;  2  lbs.  Figs  at  16/;  1  gal.  N.  0.  Molasses,  45/. 

(25.)  Mrs.  E.  K.  Slioop,  1  brl.  Flour.  $4.90;  1  Broom,  30/;  1  lb.  Vanilla  Wafers,  20/; 
5  lbs.  Oatmeal  at  6/. 

(26.)  Waverly  Hotel,  12  cases  ApoUinaris  Water  at  $1.25;  25  lbs.  Mixed  Nuts  at  30/; 
1  box  Oranges,  $3.60. 


OFFICE    ROUTINE    AND    BOOKKEEPING.  97 

After  verifying  your  calculations  enter  the  sales  in  the  Abstract  Sales  Book,  then  file  the 
Sales  Tickets  in  numerical  ordci\ 

No.  256. — Verify  the  additions  and  substraction  of  this  statement.  Make  the  entries 
therefrom.     Add  the  deposit  to  the  balance  in  bank  as  shown  by  the  Check  Book  stub. 

Make  entries  for  all  checks  issued  to-day.  Prove  cash.  Have  books  and  Sales  Tickets 
inspected.     Post  and  check  over  the  posting. 

Friday,  May  14,  189-. 
Pay  Invoice  No.  250  by  check. 
Pay  Invoice  No.  251  by  check. 
Pay  Bremer,  Mahis  &  Co.  in  full  by  chock. 
Prepare  Sales  Tickets  for  the  following: 

Sales  on  Account.— (27.)  J.  D.  Tuckey,  3  lbs.  Dried  Bartlett  Pears  at  7+^;  3  doz. 
Eggs  at  loij;  i  lbs.  Sugar  at  7iJ;  1  brl.  Flour,  $4.80;  2  lbs.  Dried  Beef  at  2G'/. 

(28.)  Mrs.  Phil.  Zoercher,  2  lbs.  Rio  Coffee  at  29'/;  3  doz.  Eggs  at  IG'/;  1  brl.  Flour, 
$4.80;  5  lbs.  Oatmeal  at  6^. 

(29.)     Mrs.  G.  Brenner,  1  brl.  Flour,  $4.80;  3i  doz.  Eggs  at  17^';  2  lbs.  Coffee  at  32^(*. 

(30.)     R.  H.  Lord,  6  lbs.  Oatmeal  at  G^-  3  lbs.  Dried  Beef  at  26^';  1  brl.  Flour,  $4.90. 

(31.)  Mrs.  S.  Eichert,  3  bu.  Potatoes  at  40'/;  2  cans  Peaches  at  27?'-;  5  doz.  Eggs  at  18^; 
6  lbs.  Soda  Crackers  at  12^^. 

(32.)  Waverly  Hotel,  50  lbs.  Butter  at  23}*;  50  lbs.  Coffee  at  27^^:  3  crates  Eggs,  60  doz., 
at  17^;  20  lbs.  Raisins  at  12A5#. 

(33.)  N.  A.  Eckler,  3  lbs.  Cheese  at  23^';  2  gal.  Applebutter  at  700;  10  gal.  K.  Oil  at 
90;  5  lbs.  Coffee  at  330. 

(34.)  Mrs.  Paul  Erey,  16  lbs.  Sugar  at  0^0;  10  lbs.  Lard  at  10^0;  i  lb.  Ground  Pepper 
at  7(i0;  5  doz.  Eggs  at  180. 

(35.)  Mrs.  Simon  Hart,  1  bottle  Vanilla  Extract,  250;  2  doz.  Eggs  at  180;  3  cans 
Peaches  at  320. 

Verify  the  calculations  and  enter  in  the  Abstract  Sales  Book.  File  the  Sales  Tickets  in 
numerical  order. 

No.  257.  Verify  the  additions  and  subtraction.  Make  the  entries.  Enter  the  deposit 
on  the  Check  Book  stub. 

Make  the  Entries  for  all  checks  issued  to-day.  Prove  cash.  Present  books  and  Sales 
Tickets  for  inspection.     Post  books  and  check  over  the  posting. 

Satukday,  Mat  15,  189-. 
Pay  one  half  of  Invoice  No.  253  by  check. 
Pay  Invoice  No.  254  by  check. 
Prepare  Sales  Tickets  for  the  following: 

Sales  on  Account.— (36.)  N.  A.  Eckler,  3  cans  Tomatoes  at  80;  5  lbs.  Sugar  at  6J0; 
2  cans  Corn  at  70;  3  lbs.  Currants  at  120. 

(37.)  Dennett's  Lunch  Rooms,  1  box  Macaroni,  $3.40;  1  box  Chocolate,  $12,00;  10  lbs. 
Butter  at  210. 

(38.)     Mrs.  P.  Zoercher,  2  cans  Peaches  at  180;  2  doz.  Pickles  at  100;  3  loaves  Bread  at  80. 

(39.)  Mrs.  G.  Brenner,  5  lbs.  Sugar  at  6^0;  1  gal.  Apjilebutter,  700;  1  gal.  Vinegar, 
200;  1  bottle  Mustard,  200. 


98  OFFICE    ROUTINli    AND    BOOKKliiilM  M 1. 

(40.)  Mrs.  E.  K.  Shoop.  2  loaves  Bread  at  >  :  -  i  ./..  Eggs  at  18{«;  1  bottle  Vanilla 
Extract,  25'/;  1  can  Baking  Powder,  20'/. 

(*1.)  J.  D.  Tuckey,  2  loaves  Bread  at  10j#;  3  lbs.  Coffee  at  32^;  4  lbs.  Dried  Peaches 
at  18^;  1  lb.  Figs,  15^. 

(42.)  R.  11.  Lord,  3  heads  Lettuce  at  4^;  1  can  Salmon,  20^;  1  Lamp  Chimney,  8^; 
2  loaves  Bread  at  8^. 

(43.)  Mrs.  E.  C.  Mills,  2  loaves  Bread  at  8^:  1  lb.  Y.  H.  Tea,  555#;  1  basket  Fancy  Fruits, 
$L25;  2  lbs.  Dates  at  7<t. 

(44.)  M)s.  Simon  llart,  2  lbs.  Crackers  at  89*;  3  heads  Lettuce  at  45*;  1  bunch  Celery,  9^; 
1  lb.  Y.  H.  Tea,  5o(?, 

Verify  the  calculations  and  enter  in  the  Abstract  Sales  Book.  File  the  Sales  Tickets  in 
numerical  order. 

No.  2.^8.  Verify  the  additions  and  subtraction.  Make  the  entries  therefrom.  Enter 
the  deposit  on  the  stub  of  the  Check  Book. 

Make  entries  for  all  checks  issued  to-day.  Prove  cash.  Balance  and  rule  the  Cash  Book 
in  pencil  as  illustrated  on  pages  88  and  80.  Present  Cash  Book,  Sales  Book  and  Sales  Tickets 
for  approval.  Balance  and  rule  the  Cash  Book  in  ink,  observing  any  suggestions  or  criti- 
cisms your  teacher  made  while  examining  your  work.  Have  you  made  proper  use  of  red 
ink?  Post  the  books.  Do  not  forget  to  post  the  totals  of  the  special  columns  in  the  Cash 
Book  as  instructed  on  page  89.  Post  the  footing  of  both  the  Sales  and  Invoice  Books. 
Check  over  the  posting. 

Trial  Balance.  Take  a  trial  balance.  Include  the  cash  and  notes  on  hand  and  the 
notes  outstanding  in  your  trial  balance.     Have  it  approved. 

Inventories.  Mr.  Creager  has  taken  account  of  the  stock  on  hand,  which  is  as  follows: 
Merchandise,  «i406.35;  Furniture  &  Fixtures,  8500;  Horse  &  AVagon,  $250;  U.  S.  Bonds 
increased  in  value  5  per  cent;  Shipt.  E.  Spencer,  8888.50;  Shipt.  Bower  &  Moore,  81151.04; 
Good  Will  at  the  same  value  at  whicli  it  was  invested.  Make  an  Inventory  of  Resources  & 
Liabilities  and  have  it  approved. 

Balance  Sheet  and  Ledger  Closed.  Make  a  Balance  Sheet  and  close  the  Ledger. 
Present  all  books  and  vouchers  for  inspection  and  approval. 

Questions.  How  do  you  transfer  a  certificate  of  stock?  Why  is  it  not  transfcrrable  by 
endorsement?  What  is  a  (]uit-claim  deed?  What  difference  do  you  observe  between  a  quit- 
claim deed  and  a  warranty  deed?  When  there  is  a  dissolution  of  partnership,  why  is  it  a 
good  plan  to  inform  those  ])orsons  of  tlic  dissolution  with  whom  the  firm  has  had  dealings? 
Describe  the  dilTeri'iit  methods  of  giving  notice  of  dissolution.  Deline  Good  Will.  Why  is 
it  a  good  idea  to  classify  accounts  in  the  Ledger?  What  reasons  can  you  assign  for  balancing 
and  ruling  the  accounts  in  the  old  Ledger  when  they  are  transferred  to  the  new  Ledger? 
What  is  the  object  in  having  special  columns  in  the  Cash  Book?  Describe  the  Abstract  Sales 
Book.  Describe  the  Sales  Tickets.  Wlij'  are  they  usually  jirinted  in  duplicate?  What  dif- 
ference in  use  is  there  between  the  Sales  Tickets  and  Cash  Tickets?  Name  the  other  books 
sometimes  used  in  retail  houses.  Describe  the  Order  Book.  Describe  the  Customers'  Ledger. 
Describe  the  Pass  Book.  What  is  a  bond?  What  is  the  object  in  requiring  a  cashier  to  give 
bond?  What  is  a  lease?  What  is  meant  by  a  cashiers  statement?  In  what  order  are  the 
Sales  Tickets  filed?  Describe  the  method  of  making  an  entry  the  amount  of  which  is  placed 
in  one  of  the  Siiecial  Columns  in  Ihe  Cash  Book.  Describe  the  method  of  footing  and  ruling 
the  Special  Columns  in  the  Cash  Book.     To  which  column  is  the  footing  transferred? 


OFFICE    KOUTINK    AND     IJUCIKKEEE'ING.  99 

COMMISSION    BUSINESS. 

itriiiic'h  House  of  J.  D.  Creagcr  &:  Co.  Hy  consulting-  your  books  for  the  Ketail 
Grocery  Business,  you  will  observe  that  the  atuouut  of  cash  invested  is  considerably  more 
than  is  necessary  to  conduct  that  business  successfully.  In  order  to  make  a  better  use  of 
your  surjilus  cajiital,  you  and  Mr.  Creager  decide  to  conduct  a  branch  business  for  the 
purpose  of  selling  goods  on  commission  for  other  parties,  and  shipping  goods,  to  be  sold  for 
your  account,  to  parties  in  other  localities.  It  is  decideil  that  j'ou  are  to  take  charge  of  the 
branch  Commission  Business,  and  that  Mr.  Creager  is  to  assume  the  entire  management  of 
the  Retail  Grocery  Business  located  at  620-623  Broadvifay.  The  name  of  the  new  concern 
is  to  be  the  Creager  Commission  Co.  (not  incorporated)  ami  is  to  be  located  at  634  Broad- 
way, next  door  to  the  Retail  Store. 

Note. — As  this  business  is  a  branch  or  part  of  the  retail  business  no  further  articles  of  agreement  are 
necessary,  and  you  will  continue  to  be  governed  by  the  partnership  agreement  of  May  tenth. 

The  Credit  Man.  Mr.  Creager  will  act  as  credit  man  for  the  branch  store.  The  duty 
of  the  credit  man  is  to  determine  who  shall  receive  credit  and  who  shall  not,  also,  the  term 
and  amount  of  credit  to  be  given.  The  position  of  a  credit  man  is  usually  a  ditticnlt  one. 
The  credit  man  obtains  his  knowledge  of  the  prospective  customers  from  the  references 
they  furnish,  from  the  commercial  agencies  and  the  banking  institutions,  and  from  other 
sources.  The  banks  usually  have  a  pretty  accurate  knowledge  of  the  financial  condition  of 
their  customers. 

Commercial  Agencies.  These  agencies  supply  their  subscribers  with  information 
pertaining  to  the  moral  and  financial  standing  of  individuals,  firms  and  corporations  who 
have  gained  a  recognized  standing  in  the  commercial  world.  This  information  is  of  great 
assistance  to  credit  men,  and  the  greater  part  of  it  is  xisuallj  contained  in  a  bound  volume, 
called  a  Reference  Book,  which  is  loaned  to  subscribers  for  a  iieriod  of  three  or  six  months, 
when  it  is  rejjlaced  by  a  revised  edition,  if  the  subscription  continues  in  force.  The  infor- 
mation thus  obtained  is  of  a  confidential  nature,  and  is  intended  for  the  use  of  subscribers 
only.  Reports  of  this  kind  are  arranged  alphabetically,  first,  according  to  states;  second, 
according  to  cities,  towns  and  villages;  third,  according  to  individuals  and  firms,  thus  enabl- 
ing anyone  to  turn  readily  to  the  name  of  the  party  desired  and  ascertain  his  rating,  etc., 
which  is  expressed  in  ciphers.  A  key  to  the  ciphers  is  printed  in  the  reference  book.  Besides 
the  above,  daily  reports  of  failures,  assignments,  judgments,  real  estate  transfers,  etc.,  are 
furnished.  When  requested  a  stipulated  number  of  rejwrts  are  also  furnished,  giving  addi- 
tional information  of  anyone  in  the  reference  book  or  information  of  someone  not  contained 
therein.  A  great  many  business  houses  consider  a  subscription  to  a  good  commercial  agency 
a  necessary  item  of  exjiense.  A  few  of  the  commercial  agencies  are  of  a  national  or  inter- 
national character,  supjilying  information  of  business  men  everywhere.  Others  are  of  a 
purely  local  character,  and  give  information  only  of  persons  residing  in  the  same  city.  This 
latter  class  is  intended  mainly  for  the  retail  trade,  and  usually  gives  the  rating  of  all  those 
who  provide  for  themselves  and  others,  esj^ecially  householders  residing  within  the  citj'  limits. 

Note. — Honesty  is  necessary  in  any  legitimate  business.  If  you  are  engaged  in  business  the  commercial 
agencies  will  secure  most  of  their  information  concerning  you  from  those  with  whom  you  have  had 
dealings,  j-our  bank,  your  creditors,  etc.  If  you  have  not  been  honest,  it  will  lie  proclaimed  to  the  entire 
business  world  through  the  commercial  reports. 

Special  Features  of  a  Commission  Business.  The  first  thing  you  arc  to  do  is  to 
acquaint  yourself  with  the  special  features  of  commission  bookkeeijing.  You  are  already 
familiar  with  the  jirinciples  of  keeping  commission  accounts.  It  is  the  purpose  of  this  busi- 
ness to  illustrate  a  labor  saving  system  of  keeping  such  accounts. 


1(M» 


OFFICK    KiJUTINE    AM)    HOOKKEEPING. 


Loose  Li'iil'  (  oii.sigiiiiH'iit  Lcdirer.  li  is  the  custom  of  some  commissiou  merch;iiits 
to  enter  a  consignment  wlicn  received  in  wliat  is  called  a  Receiving  Book;  thenan  account 
with  each  consignment  is  ojiened  in  tlie  Ledger,  in  wliich  is  entered  a  detailed  description  of 
the  goods  as  it  ajijiears  in  the  receiving  hook.  When  all  the  goods  belonging  to  a  consign- 
ment arc  sold  an  Account  of  Sales  is  rendered,  which  is  an  exact  copy  of  the  consignment 
account  as  kept  in  the  ledger.  By  the  use  of  the  Loose  Leaf  Method  the  Receiving  Book, 
Consignment  Ledger  and  Account  of  Sales  arc  combined,  whereby  only  one-third  as  much 
writing  is  required  as  by  the  first  method.  (iSV?c  iUuittrafion  of  page  of  Loouc  Leaf  Consign- 
mint  Ledgir  below.) 


Sale  or  mcrchandibc  roR  account  o 


^'  Creager  Commission  Co., 

COMMISSION    MERCHANTS, 


(Your  pUkC*  b»r«.) 


taieiet  No — g-'^^- . 


'^jX^^ 


(Wriw  yonr  owa 


a 


fir 


of 

»>-<! 

/.a 

3 
/ 

/.£ 

^7 

^<^ 

.9^ 

J./ 

^.S 

7^ 

-'-^ 

7-^ 

These  pages  are  ])rinted  in  copying  ink,  and  the  sheets  arc  usually  numbered  and  padded 
consecutively.  In  case  they  are  not  numbered,  the  number  is  to  be  supplied  by  the  book- 
keeper. This  number  is  also  the  lot  number  of  the  consignment  and  is  stenciled  or  written 
on  every  jjackago  of  goods  belonging  to  the  consignment.  When  the  goods  are  not  received 
in  ])ackages  they  are  jdaced  in  stalls  or  other  receptacles,  on  wliich  arc  ]daced  the  proper  lot 
numbers.  Consignments  arc  designated  by  lot  numbers;  first,  for  convenience;  second,  to 
prevent  the  commission  merchant's  customers  from  learning  the  source  from  which  he  gets 
his  merchandise. 

When  a  consignment  is  received  it  is  checked  up  by  the  receiving  clerk  with  the  invoice 
of  shipment,  letter  of  advice,  bill  of  lading,  or  any  other  document  sent  by  the  consignor. 
After  he  has  verifieil  the  voucher  referred  to,  or  noted  any  irregularities  thereon,  it  is  sent  to 
the  olliee  and  from  it  the  bookkeeper  enters  on  a  receiving  blank  the  name  and  address  of 
the  consignor,  the  date  of  the  shipping  invoice  (or  other  document  of  similar  nature),  usually 
the  name  of  the  transjiortation  company,  the  date  when  received  and  a  description  of  the 
goods.      {^Sec  iUuslrntion  ahnve.)     It  is  then  filed  in  a  binder  and  thereby  becomes  a  part 


OFFICE    ROUTINE    AND     BOOK  KKEriNG.       .  101 

of  the  Loose  Leaf  Ledger.  Wlieii  all  the  goods  belonging  to  a  consignineiit  have  been 
sold,  the  commission  and  other  charges  are  calculated  and  the  net  proceeds  ascertained,  all 
of  which  are  entered  in  the  account.  The  sheet  is  then  removed  fnim  the  binder  and  an 
impres.sion  taken  of  it  in  an  Lnpression  Account  Sales  Book,  when  it  is  sent  as  an  account 
of  sale  to  the  consignor.  In  business  all  the  writing  on  tiiese  sheets  should  be  done  with 
Japan  ink,  so  as  to  insure  a  good  impression  in  case  considerable  time  elapses  from  the  time 
a  consignment  is  received  until  the  account  sales  is  rendered.  Li  business  these  binders  are 
made  in  various  styles,  and  most  of  them  are  protected  by  patents.  Li  this  business  instead 
of  using  a  binder  you  will  paste  the  sheets  as  instructed,  and  tear  them  at  the  perforation 
when  removing  them.  The  accounts  in  this  book  should  be  indexed  both  alpliabcfically  and 
numericalh/.     {See  separate  index  in  yonr  pnchatje  of  snpjilie^.) 

Advantages  of  tlie  Loose  Leaf  Method.  The  Loose  Leaf  Method  may  be  used  advan- 
tageously in  any  business.  Some  of  the  advantages  are:  first,  only  live  accounts  need  be 
kept,  because  as  soon  as  an  account  becomes  inactive  the  sheet  containing  it  may  be  removed 
and  filed  away.  If  at  any  time  it  should  again  become  active  it  may  be  re-inserted  in  the 
binder  wherever  desired.  Second,  accounts  may  be  arranged  in  alphabetical  order,  or  classi- 
fied in  any  other  manner  that  may  be  desirable.  Tliird,  a  binder  may  be  used  continuouslv, 
it  only  being  necessary  to  supply  the  sheets  or  pages  as  needed.  Instead  of  using  binders 
the  sheets  (sometimes  cards)  are  placed  in  draw  cabinets  similar  in  construction  to  the  card 
index  cabinets  used  in  many  of  our  libraries.  Indeed,  the  innovations  made  by  modern 
appliances  of  every  description  have  been  so  great  that  it  will  be  more  apjn-ojiriate  in  the 
near  future,  in  speaking  of  the  recording  of  business  transactions,  to  call  it  accounting  or 
accountkeeping  instead  of  bookkeejiing.  It  may  be  depended  upon  that  in  the  ])rogressive 
counting  rooms  of  tlie  future,  books  will  be  used  onlg  when  they  possess  advantages  over 
everything  else. 

Impression  Account  Sales  Book.  As  has  been  stated,  in  this  book  an  impression  is 
taken  of  every  account  sales  before  it  is  sent  to  the  consignor.  This  is  done  so  that  reference 
can  be  made  to  any  account  sales  in  case  of  dispute,  or  in  case  an  account  sales  fails  to  reach 
the  consignor,  a  duplicate  can  be  made  of  it.  {See  illustration  of  Account  Sales  Book, 
page  102.) 

These  books  are  made  of  fine  tissue  paper  so  that  they  will  absorb  the  ink  readilv.  In 
the  first  column  to  the  right  are  extended  the  proceeds  of  those  accounts  sales  for  which  no 
remittances  are  made  at  the  time  they  are  rendered.  Such  proceeds  are  posted  to  the  credit 
of  the  accounts  of  the  persons  to  whom  the  accounts  sales  are  rendered,  while  the  total  of 
the  column  is  posted  to  the  debit  of  Consignment  account  in  the  Main  Ledger  whenever  a 
trial  balance  is  taken.  No  extension  is  made  in  this  column  if  the  proceeds  are  remitted 
with  the  account  sales.  In  most  lines  of  business  the  i^roceeds  are  remitted  with  the  account 
sales.  Su])pose  the  goods  are  sold  on  30  days  account  and  the  commission  merchant  remits 
the  proceeds  to  the  consignor  on  the  day  of  sale;  he  would  lose  the  use  of  his  money  for  30 
days.  This  is  overcome  by  discounting  the  proceeds  for  30  days.  In  cases  like  this,  the 
discount  would  be  deducted  from  the  proceeds,  the  same  as  charges,  commission,  etc.  In 
the  outer  column  is  entered  the  commission  earned  on  each  consignment.  The  total  of  this 
column  is  posted  to  the  debit  of  Consignment  account  and  to  the  credit  of  Commission 
account  in  the  Main  Ledger,  at  the  time  of  taking  a  trial  balance. 

The  accounts  in  the  Account  Sales  Book  should  be  indexed  both  numerically  and  al))ha- 
betically  in  the  same  index  in  which  you  index  the  accounts  \n  the  Consignment  Ledger,  as  it 
is  a  decided  advantage  to  use  but  one  index  for  both  of  these  books.  Whv?  What  advantage 
do  vou  see  in  a  numerical  index? 


1U2 


OIFICE     koiniNE    AND    KOUKKKIil'INt; 


Impukssion-  Ar(  urxT  Sales  Book. 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


103 


Sales  Itook.  The  sales  book  in  a  commission  business  differs  from  an  ordinary  sales 
book.  A  column  to  receive  the  consujiiment  sales  and  a  column  in  which  are  extended  the 
cash  sales  are  provided  in  addition  to  tiie  usual  mercliandise  column.  The  goods  belonging 
to  consignments  are  designated  by  their  lot  numbers  in  the  column  ruled  for  that  purpose. 
{See  illustration  of  Sales  Book.)  These  lot  numbers  also  indicate  the  pages  of  the  Consign- 
ment Ledger  to  which  the  various  items  are  to  be  posted,  while  the  amounts  of  sales  from 
consigumeuts  are  extended  to  the  Sales  column,  and  the  amounts  of  our  merchandise  to  the 
Merchandise  column.  When  a  trial  balance  is  to  be  taken  the  total  of  the  Sales  column  is 
posted  to  the  credit  of  the  Consignment  account  in  the  Main  Ledger,  and  the  total  of  the 
Merchandise  column  to  the  credit  of  Merchandise  account.  When  a  sale  is  jiaid  for  at  the 
time  of  sale  it  is  checked  in  the  folio  column  to  show  that  it  is  not  to  be  posted,  and  the  total 
is  extended  to  the  Cash  column.  The  Cash  column  should  be  footed  each  day  independently 
of  every  other  day,  and  the  footing  should  equal  the  actual  amount  of  cash  received  from 
cash  sales  for  the  day.  This  amount  is  carried  to  the  General  column  in  the  Cash  Book  and 
checked  in  the  folio  column  to  show  that  it  is  not  to  be  i)0sted.  Why?  {See  illustration  of 
Sales  Book  helow.) 

Sales  Hook. 


Li  )i 

No. 

4 
7 

4 

L.  F. 

M.\Y  24,  1S9-. 

Extensions 

.\ND 
.\MOUNTS. 

Cash. 

Sales. 

Mdse. 

Grainger  &  Co., 

on  account, 
1  box  Oranges, 

1  criite  Onions, 
10    "     Tomatoes, 

Austin  Thompson, 

2  boxes  Lemons, 
2  crates  Galons, 

.Marion, 

2.00 

cash, 
4.50 
1.75 

6 
1 

20 

75 
50 

12 

50 

21 
3 

75 
50 

6 
9 

27 

9 
3 

6 
4 

6 

V 

25 
I.  L.  Whitehead, 

on  account, 
5  crates  Cucumbers,' 
3      "      Onions, 
1  box  Lemons, 

H.  H.  Bielefeld, 

3  crates  Cucumbers, 
1  box  Oranges, 

Mdse.  Cr., 
Consignments  Cr., 

Rome, 

1.40 
1.75 

cash, 
1.40 

12 

7 
5 
4 

50 

25 

50 

75 
20 

"20" 

10 

20 

12 

4 

25 
20 

4 
6 

50 

16 

4 
6 

10 

1 

25 

50 

41 

70 

I 

1 

Cash  Book.  The  General  columns  of  the  Cash  Book  are  to  receive  all  amounts  for 
which  there  are  no  special  columns  provided.  In  the  Shipments  columns  are  placed  the 
amounts  received  and  paid  out  on  account  of  shijDments.  Tlie  totals  of  these  columns  are 
posted  to  the  Shipment  account  in  the  Main  Ledger,  while  the  iteins  are  posted  to  the  proper 
accounts  in  the  Shipment  Ledger.  On  the  debit  side  of  the  Cash  Book,  columns  for  the 
losses  and  gains  on  shipments  are  provided.     The  gain  or  loss  on  a  shipment  is  ascertained 


1(14 


OIKICK    kOUTI.Nli    ANU    ISUOKKEKriNG. 

Cash. 


BATK. 

L.  F. 

KAMB   AND    EXPI,AKATI01I. 

OENEK.Vl. 

snip- 

MBNTS. 

GAIKS.             I.OSHES. 

1S9-. 

May 

24 
25 

26 

27 

29 

( 
»' 

« 

H.  S.  Wect.                    invi'stnu-nl, 
Casli  sales,                      for  day, 
Grainger  &  Co.,            in  full, 
Shipt.J.  K.  Williams,  proceeds, 
Casli  sales.                     for  day, 
Sliipt.  II.  J.  Pierrard,    reed.  »<•  sales, 
Sliipt.  Graiuger&Co.,  proceeds, 
Ca.sh  sales,                      for  day, 
Austin  Tliompson,        on  acct., 
I.  L.  Whitehead,           in  fiUl. 
Cash  sale.s,                     for  day, 
Shipl.  11.  J.  Pierrard,    proceeds  as  per  acct. 
sales  of  26  inst.. 

Shipments,  Cr., 

Shipments,  Dr..                                                1 
Loss  &  Gain  Cr.,                                    f 

Balance, 

2500 
70 
78 

.'■.2 

66 
67 
42 
70 

75 
223 

60 

40 
50 
95 
45 

60 

I 

60 
60 

12 
8 

l.-> 

111 

223 

21 

15 

00 
10 

15 

10 

5 

90 

'    3247 

40 
80 

May 

81 

1    2281 

by  referring  to  the  account  in  tlie  Shiimient  Ledger  at  the  time  tlie  remittance  for  tlie  jiroceeds 
is  received.  These  columns  arc  not  to  be  considered  when  proving  cash,  as  they  contain 
journal  entries  and  are  })laced  in  the  Cash  Book  merely  for  convenience.  At  tlie  time  of 
closing  tlie  Casli  BooL  the  difference  between  the  Gain  and  Loss  columns  is  posted  to  the 
Shipment  account  and  also  to  the  Loss  &  Gain  account  in  tlie  JIain  Ledger.  {Sec  illustra- 
tion  of  Ca^h  Book.)  The  Coiisignmetits  column  on  the  credit  side  receives  all  amounts  paid 
out  on  account  of  consignments.  The  total  of  this  column  is  posted  to  the  debit  of  the 
Cousignmcnt  account  in  the  jMain  Ledger  at  the  time  of  closing  the  Cash  Book.  All  amounts 
appearing  in  this  column  are  *lso  entered  in  the  proper  accounts  in  the  Consignment  Ledger. 
The  Discount  column  on  the  credit  side  receives  tlie  discounts  allowed  to  the  business  by 
others.  The  total  of  tliis  column  is  jiosted  to  the  credit  of  Merchandise  Discounts  account 
at  the  time  of  closing  the  Cash  Book.     {See  illustrafion  of  Cush  Jionl-  on  jmpes  10^  and  105.) 

Shipnu'iit  Li'dsjer.  Instead  of  using  both  a  shipment  book  and  a  shipment  ledger,  the 
two  are  combined  by  using  an  itemized  Shipment  Ledger  provided  with  a  special  merchan- 
dise column.  {See  illustralion  of  Shipment  Ledger,  page  105.)  When  a  shipment  is  made, 
the  date  of  the  shipment,  the  name  and  address  of  the  consignee,  the  name  of  the  transpor- 
tation company,  a  description  of  the  articles  shipped  and  their  valuation  (usually  current  cost 
price)  are  entered  in  this  book,  and  the  amount  extended  to  the  merchandise  column  and  akso 
to  the  debit  ledger  column.  If  charges  are  paid  on  a  shipment  they  are  entered  in  tiic  Cash 
Book  and  ])osted  from  it  to  this  book.  When  an  account  of  sales  and  a  remittance  for  the 
proceeds  are  received,  the  amount  of  the  proceeds  and  the  net  gain  or  net  loss  arc  entered  in 
the  Ciish  Book  and  from  it  jiostcd  to  the  Shipment  Ledger.  An  account  of  sales  not  accom- 
panied by  a  remittance  for  the  proceeds  is  treated  as  a  nieinoiandtim  until  the  remittance  is 
received.  At  the  time  of  taking  a  trial  balance  the  total  of  the  Merchandise  column  is  posted 
to  the  debit  of  Shipment  account  and  also  to  the  credit  of  Merchandise  account  in  the  Main 


OFFICE    RtJUTlNE    AND    BOOKKEEPING. 


105 


Cash. 


1 

SHIP- 

CONSIGN- 

DATE. 

L.  F. 

N.\ME   AND   EXPLANATION. 

disc'ts. 

GBNEUAL, 

MENTS. 

MENTS. 

May 

25 

26 

27 

29 

Shipt.  J.  C.  Dodson, 

Expense, 

Freiiiht, 

T.  P.  McMenamim, 

Shipt.  H.J.  Pierrard, 

H.  S.  Weet, 

Const.  II.  Bader, 

Shipt.  Jno.  Malone, 

Shipt.  J.  A.  Luman, 

Const.  G.  \V.  Dodson 

Expense, 

Wm.  Becker, 

Const.  J.  F.  Brown, 

Jno.  P.  Batson, 

Consignments, 

freight, 
rent, 

in  full  less  2%, 
freight, 
private  use, 
net  proceeds, 
freight, 

net  proceeds, 
cleaning  store, 
in  full  less  2%, 
net  proceeds, 
in  full  less  3^, 
charges  paid. 

3 

1 
3 

60 
60 

00 

17 

147 

50 

4 

78 

116 

I 

50 

i 

50 
40 

40 

0 

2 

4 
2 

50 

60 

25 
70 

174 

182 

92 
22 

80 

65 

75 
40 

Shipt.  Vincent  Smith 
Consignments,  Dr., 

freight, 

473 

60 

3 

15 

472 

60 

Shipments,  Dr., 

(  hank.             2S75.00 

19 

20 

19 

20 

31 

Balance, 

Mdse.  Discts.,  Cr., 

'{  mfe,                     6.80 

S2S1 

SO 

8 

20 

3247 

40 

Ledger.  Shipment  accoitnt  in  the  Main  Ledger  represents  the  Shipment  Ledger  and  should 
prove  an  abstract  of  it.  All  accounts  in  the  Shipment  Ledger  should  be  indexed  immedi- 
ately after  they  have  been  opened  and  checked  in  the  column  ruled  for  the  purpose  to  show 
that  they  are  indexed.  At  the  end  of  the  month  this  column  is  also  used  as  a  folio  column 
for  Shipment  and  Merchandise  accounts  in  the  Main  Ledger.  {See  iUii.^traliini  of  Shipment 
Ledger  below.) 

Shipment  Ledger. 


Index, 

May  34,  189—. 

Ledger  Accounts. 

Check  & 
Folio. 

Debits. 

Credits. 

Folio  A: 

EXPLA'N. 

C  6 

C  8 
Gain 

DATE. 

V 

Frank  J.  Bower,                             Tipton,  Ind- 
100  bn.  Potatoes,  22j^,                            22. 
50  lirls.  Apples,  1.50,                           75. 
Union  Line. 

25 

Edwin  Dalton,                            Newark,  N.  J. 

40  boxes  Oranges,                                  4  00 

Merchants  Dispatch. 
26 
C.  F.  Alcott,                               Auburn,  N.  Y. 

200  bu.  Potatoes,  22(#,                            44. 
40  boxes  Lemons,  3.00,                      120. 

Big  Four  Route. 
Shipments  Dr.                                           Total.  ) 
Mdse.  Cr.                                                        "      ) 

97 
160 
164 

97 

2 

3 

50 

102 
102 

50 
50 

189-. 
May 

24 

27 

102 

50 

V 

160 

V 

164 
6 

40 

168 

1 

170 

50 
90 

40 

C  7 
C  8 
Loss 

May 

27 
28 

3 
6 

421 

170 

40 

Ledgers.  In  addition  to  the  foregoing  labor-saving  forms  which  arc  common  to  the 
commission  business,  the  method  of  using  more  than  one  ledger  is  presented,  a  feature  that 
may  be  used  to  advantage  in  any  kind  of  business  where  a  division  of  labor  is  necessary. 


lotj 


Ol  KICE    KOLTINE    AM)    bOOKKKEPIXG. 


Tlirc'o  ledgers  will  be  xiseil:  ^laiii  Ledger,  Shipnieiit  Ledger  and  C onsigiiineiit  Ijcdger.  The 
Shipuient  and  Consignment  Ledgers  have  already  been  explained.  'Die  Main  Ledger 
receives  all  accounts  which  do  not  classify  in  the  Shipment  and  Consignment  Ledgers,  and 
in  addition  acconnts  with  those  ledgers  are  kept,  a  Consignment  account  representing  the 
Consignment  Ledger  and  a  Siiipment  account  rei)resenting  the  Shipment  Ledger. 

You  will  observe  by  consulting  the  books  of  original  entry  (Sales  Book,  Cash  Book, 
Shii)nient  Ledger  and  Impression  Account  Sales  Book)  that  special  columns  are  provided  to 
receive  all  items  that  are  to  be  posted  to  either  the  Shijiment  Ledger  or  Consignment 
Ledger,  and  that  the  totals  of  these  columns  are  jiosted  to  the  Shipment  and  Consignment 
accounts  in  the  Main  Ledger.  This  being  the  case  it  is  apparent  that  tlie  balances  of  these 
accounts  should  equal  the  sum  of  the  net  debit  or  credit  balances  of  the  Ledgers  they 
re))rcsent. 

Main  Lcdircr.  The  ruling  of  the  Main  Ledger  differs  from  the  form  presented  in  the  jire- 
ceding  work.  {tScc  illustration  below.)  Some  of  the  advantages  of  this  form  are:  The  money 
columns  are  brought  together  in  the  center  of  the  page,  making  it  easier  to  compare  debit 
and  credit  amounts  tlian  when  the  credit  column  ajipeurs  at  the  right-hand  edge  of  the 
page.  But  one  ruling  is  required  when  an  account  balances,  whereas  two  or  three  are 
required  by  the  other  method.  The  explanation  columns,  which  are  used  very  little,  are 
next  to  the  edges  of  the  luige,  wliero  it  is  often  very  diflicult  to  write  in  a  large  book. 


ESMAHATION  COLOUN 


'F- 


^  -0f^ 


^/^ 


POUO  DOIXARS 


o-    c      ^^-? 


/ 

/^ 


^^'-^y 


■6 


/^ 


7J. 


6-i^  r^ 


^^ 


i^ 


DOLLAMS  POUIO  DaTB 


y/^ 


/i- 


^^a. 


a^ 


^ 


Lcttei'  liouk.  The  letter  book  is  a  book  made  of  fine  tissue  paper  similar  to  the 
Impression  Account  Sales  Book,  in  w-hich  an  impression  should  be  taken  of  every  letter^ 
before  it  is  mailed.  Great  care  should  be  exercised  in  taking  imj)ressions,  as  the  making 
of  good  coj)ies  with  the  letter  press  can  be  learned  only  by  careful  practice.  In  some  lines  of 
business,  like  railroading,  ten  or  more  copies  are  often  required  of  certain  documents,  all  of 
which  are  made  with  one  impression  of  the  letter  press.  To  be  able  to  make  this  number  of 
copies  successfully  requires  considerable  .>;kill.  Every  letter  as  soon  as  it  is  co])ied  should  be 
indexed  and  checked  to  show  that  it  is  indexed.    (<Sec  illustration  of  Letter  Book  on  page  107.) 

Note. — In  case  you  do  not  have  tlie  use  of  a  leller  press,  you  are  to  make  a  neat  anil  acrurate  transcript 
witli  a  k'ad  pencil  of  every  letter  you  write,  in  your  letter  book.  Tliis  is  done  so  that  you  will  have  a  copy 
of  vovir  letter  for  reference. 


OFFICE    ROUTINE    AND     BOOKKEEPING. 


107 


108  (tnirr;   roi-tini-:   and   uuoKKtiii'iNG. 

Iiidexiili;.  Notiiing  is  ui  hkhv  inijioitaTicc  in  counting-room  work  ilian  tlic  correct 
indexing  of  leilger  accounts  and  other  office  records.  There  are  a  number  of  labor-saving 
indexes  of  various  styles  and  makes  on  the  market,  some  of  which  arc  patented  or  copy- 
righted, and  all  of  which  are  based  on  the  principle  of  alphabetical  or  numerical  arrange- 
ment. Everv  account  in  your  Main  Ledger  should  be  indexed  before  it  is  opened.  This  is 
verv  important  and  is  done  in  order  that  noaccounts  will  be  omitted  from  tlie  index.  An  index 
that  docs  not  contain  nil  the  accounts  is  very  unreliable  and  almost  useless.     Do  you  see  why? 

XoTE. — In  case  the  accounts  or  records  occur  in  regular  order  as  in  the  Letter  Book,  Consignment 
Ledirer,  Shipment  Ledger,  Invoice  Book,  Impression  Account  Sales  Book,  etc.,  the  indexing  may  be  done 
immediately  after  the  record  is  made;  but  in  that  case  every  account  that  has  been  indexed  should  be 
checked  so  that  none  may  be  omitted  from  the  index.  Both  an  alphabetical  and  a  numerical  index  can  be 
used  to  good  advantace  with  the  Consignment  Ledger  and  the  Impression  Account  Sales  Book.  Do  you 
see  why? 

Vowel  Index.  Probably  the  most  widely  used  form  of  index  is  the  vowel  index  shown 
in  the  illuslraiion  of  letter  book  on  page  107.  In  indexing  C.  P.  Zaner  &  Co.'s  letter  you 
would  ojieu  the  index  at  the  letter  "Z.""  In  a  vowel  index  each  letter  is  divided  into  six 
divisions,  viz.:  A,  E,  I.  0,  U,  Y.  Sometimes  I  and  Y  are  considered  as  one  division.  The 
first  vowel  after  the  initial  letter  in  the  first  surname  of  any  title  to  be  indexed  decides  the 
column  in  which  it  is  to  be  entered.  The  first  vowel  in  the  word  Zaner  is  "a",  therefore, 
this  firm  name  is  indexed  under  the  letter  "  Z  "  and  in  the  vowel  column  headed  "A". 
Turn  to  the  illustration  and  see  if  you  can  ascertain  for  yourself  why  the  remainder  of  the 
names  are  placed  under  the  other  vowel  letters. 

The  same  is  to  be  observed  in  looking  for  a  name  in  a  vowel  index.  In  looking  for  tlie 
page  of  Jas.  Zucker"s  letter  you  would  turn  to  the  letter  "  Z  "  of  the  index  and  trace  for  the 
name  in  the  vowel  column  headed  "  U  ".  as  tiie  first  vowel  in  the  word  Zucker  is  "u." 

Passing  before  Postiiis;.  Before  posting  a  day's  records  take  the  index  and  page 
eacii  item  to  lie  posted  by  writing  opposite  it  in  the  folio  column  the  page  of  the  account  as 
shown  in  the  index.  After  all  the  items  which  arc  to  be  posted  have  been  paged,  proceed 
to  post  each  item  to  the  ])age  which  you  liavc  indicated,  and  as  each  item  is  posted  to  its 
account  place  a  check  mark  next  to  the  folio  figures,  thus  \j  'i\.  Some  bookkeepers  con- 
sider it  an  advantage  to  do  the  paging  in  red  ink,  the  check  marks  being  in  black  will 
ap])ear  more  distinctly,  thus  guarding  against  omissions  and  errors.  By  this  method  time 
will  be  saved,  errors  will  lie  less  likely  to  occur  and  neatness  will  be  secured. 

Other  Books  Soiuetiiiies  Used.  In  many  commission  houses  other  books  and  forms 
tiiaii  those  described  in  the  j)receding  ])aragrai)hs,  are  used.  Those  most  frequently  used 
are  the  Keceiving  Hook,  Consignment  Ledger,  Shipment  Book  and  Shipment  Ledger. 

Ueceiviiig  Book.  This  is  usually  a  cheap,  coarse  book  with  ordinary  journal  rulings. 
In  It  is  entered  a  detailed  descrijjtion  of  every  consignment  when  received.  The  entries  in 
this  book  are  transferred  to  the  Consignment  Ledger. 

Coiisi!j;iiiiieiit  Ledger.  A  detailed  description  of  each  consignment  as  it  ajipears  in  the 
Heceiving  Hook  is  transferred  to  the  debit  side  of  an  account  bearing  the  name  of  the  con- 
signor, in  the  Consignment  Ledger.  When  sales  are  nuide  they  are  transferred  to  the  credit 
side  of  the  account  from  the  Sales  Book.  After  all  the  sales  have  been  entered  the  commis- 
sion and  other  charges,  if  any,  are  calculated  and  ait  account  of  sales  rendered,  which  is  an 
exact  CO])}'  of  the  account  as  it  appears  in  the  Consignment  Ledger.  The  ruling  of  the 
Consignment  Lodger  is  usually  of  the  ordinary  form  of  Ledger. 


OFFICE    ROUTINE    AN'D     lU  lOK  KEEPING. 


109 


Sliiliiueiit  J$ook.  The  Shii)nieut  Book  is  ruled  likr  :iii  urdiiiary  Jouruiil.  In  tliis  book 
a  duLiiilt'd  desc-rijitloii  of  every  slii]iment  is  entered.  ;nid  tlie  entries  are  posted  to  the  Ship- 
ment Lodger. 

Slii|>iiioiit   liCMl^nt'i".     Tlie  Sliipuieiit  Ledger  is  iisnally  of  the  ordinary  form  of  Ledger. 

Market  Quotations.  In  this  business  the  transactions  for  but  one  day  of  each  week 
will  b(^  given.  The  following  market  quotations  are  to  be  used  for  all  sales.  Shipments  are 
not  to  be  entered  at  the  selling  i)rice,  but  at  ciirnmf  cost  which  will  be  specified  in  each  case. 


June. 


.M  VKKKT    tiliOTATlONS. 


Cabbage,  per  crate 

Clams,  per  box, 

Cucumbers,  per  crate... 

Lemons,  per  bo.x 

Melons,  each 

Onions,  per  crate 

Oranges,  per  bo.\ 

Oysters,  per  box 

Pineapples,  per  doz. , 

Potatoes,  per  bu. , 

Sweet  Potatoes,  per  brl 
Tomatoes,  per  crate,  . . . 


1.5 


22 


29 


3  50 

3  20 

3  10 

3  10 

1  20 

1  20 

1  25 

1  20 

1  .50 

1  45 

1  50 

1  40 

•■>  00 

5  00 

5  00 

4  90 

25 

23 

20 

20 

1  75 

1  70 

1  70 

1  65 

li  00 

6  00 

5  75 

5  50 

1  20 

1  20 

1  25 

1  25 

1  40 

1  40 

1  35 

1  30 

70 

60 

60 

55 

3  00 

3  00 

2  75 

2  60 

2  00 

2  00 

1  95 

1  95 

Account  with  Main  Store.  No  investment  will  be  made  for  the  Commission  Busi- 
ness. All  bills  for  this  business  will  be  ])aid  by  the  Main  Store  and  all  cash  will  bo  received 
by  it.  As  the  Branch  House  keeps  no  bank  account,  no  checks  will  be  issued,  but  instead 
orders  will  be  drawn  on  the  Main  Store  for  payments  other  than  cash  bills,  which  will  be  paid 
upon  presentation,  if  0.  K.,  without  an  order.  These  orders  will  be  cashed  upon  presenta- 
tion at  the  Main  Store  and  charged  to  the  Branch  Store.  When  a  remittance  is  to  be  made 
the  order  is  drawn  as  usual  and  sent  to  the  Main  Store  where  a  check  will  be  drawn  and  sent 
in  place  of  the  order.  The  cashier  will  render  a  detailed  statement  each  day,  exhibiting  the 
amount  of  cash  received  and  paid  out  for  account  of  Branch  Store,  from  which  the  records 
will  be  made  in  the  Cash  Book.  The  Cash  Book  represents  the  account  with  the  Main  Store. 
The  method  of  keeping  this  account  is  similar  in  every  respect  to  the  method  of  keeping 
the  proprietor's  account.  The  difTerence  between  the  debit  and  credit  sides  of  the  Cash 
Book  (excluding  the  amounts  in  the  Loss  and  Gain  and  Merchandise  Discounts  columns)  is 
either  the  amount  the  Branch  Store  owes  the  Main  Store,  or  the  net  income  of  the  Main 
Store  from  the  Branch  Store.  At  the  time  of  closing  the  books  the  net  gain  or  net  loss 
should  be  carried  to  the  Main  Store  account.  The  balance  of  this  account  should  be  carried 
to  the  trial  balance  whenever  one  is  taken. 

NoTK. — This  balance  could  be  transferred  to  the  JIain  Ledger  under  the  title  Main  Store  and  from  there 
curried  to  the  trial  balance,  but  there  can  be  no  practical  good  resulting  from  this  procedure,  which  only 
necessitates  unnecessary  labor. 


May  20,  1S9-. 

Preparatory  to  beginning  business,  you  will  order  goods  and  request  that  they  be  con- 
signed to  you  to  be  sold  on  commission  for  account  of  the  consignors,  as  directed  in  the 
following  jiaragraphs.  Be  very  careful  in  composing  your  letters.  It  will  be  well  for  you 
to  make  neat  drafts  of  your  letters  and  have  them  inspected  by  the  teacher  before  copying 


110  OFFICE    ROUTINE    AND    BOOKKEEPING. 

them  on  the  letter  lieads  furnished  in  your  supjilies.  Have  all  letters  ajinroved  before  taking 
impressions  of  thein  in  your  letter  book.  Do  not  forget  to  index  and  check  every  letter  as 
directed  on  pages  100  atul  108. 

Write  a  letter  to  The  Harvey  &  Watts  Co.,  Louisville,  Ky.,  stating  that  you  are  about  to 
begin  a  produce  eoniuiission  business  and  that  you  would  be  pleased  to  have  them  consign 
to  yon,  not  later  than  the  first  of  next  month,  at  least  25  crates  of  good  grade  Onions,  to  be 
sold  on  their  account  and  risk.  Tell  them  that  your  charges  for  disposing  of  same  will  be  ten 
per  cent,  of  sales.  Mention  the  fact  that  your  concern  is  a  branch  of  J.  D.  Creager  &  Co., 
and  give  your  bank  (Farmers  &  ilechauics)  as  reference.  {Sec  model  illustrated  iii  Letter 
Book  on  paye  107. ) 

Order  from  Frank  J.  ^liller.  New  York  City,  300  cans  of  Oysters  and  600  cans  of  Clams  on 
60  days  account,  asking  liim  to  name  his  best  di.scount  if  jiaid  within  30  days.  Tell  him 
that  your  business  is  a  branch  of  J.  D.  Creager  &  Co.  and  refer  liim  to  your  bank  and  the 
leading  mercantile  agencies.  Request  that  the  goods  be  shipped  in  time  to  reach  you  liy  the 
first  of  tlune. 

Write  to  Johnston  &  Brevillier,  Chicago,  111.,  asking  tliem  to  shij)  to  you,  at  the  earliest 
possible  date,  100  crates  of  nuirketablc  Tomatoes,  to  be  sold  on  their  account  and  risk.  Give 
as  references  such  ])arties  as  you  think  best  to  give. 

After  taking  an  impression  of  your  letters  insert  them  in  neatly  addressed  envelopes. 
When  you  have  your  letter  book  ])roperly  indexed,  submit  it  for  inspection  and  hand  the 
letters  to  the  teacher  to  be  mailed.  You  will  be  obliged  to  transcribe  your  letters  in  pencil 
if  you  do  not  have  the  use  of  a  letter  press. 

MOND.W,  .lUNE   1,  189-. 

Your  teacher  will  now  hand  you  the  incoming  vouchers  if  your  work  to  this  ])oint  has 
been  satisfactorily  perfornuil. 

Jlr.  Creager  lias  engaged  -Mr.  Wni.  Brenner  as  salesman  in  the  Branch  Store  and  to  assist 
in  the  JIain  Store  at  a  salary  of  %12  per  week  —  each  store  to  bear  one-half  of  the  expense. 
All  bills  and  invoices  of  merchandise  will  be  checked  and  0.  K.'d  by  him  if  found  to  agree 
with  the  merchandise  received.  The  Branch  Store  is  also  to  pay  one-half  of  the  cashier's 
salary. 

No.  259. — Examine  this  invoice  of  merchandise  (sometimes  called  letter  of  advice)  care- 
fully, lias  the  merchandise  been  received?  Uow  do  you  know?  Refer  to  your  letter  book 
to  see  if  this  invoice  agrees  with  your  order.  If  so  make  a  record  of  same  on  a  receiving 
blank,  referring  to  the  illustration  on  page  100.  Place  the  lot  numbar  in  the  upper  right- 
hand  corner  as  a  folio  num1)er.  Paste  this  sheet,  face  ui)ward,  to  the  inside  of  the  title  page 
of  the  Consignment  Ledger,  wiiicli  you  will  find  in  your  supplies.  File  the  invoice.  Index 
this  account  numrrinilhi  and  iil/ihdMiciill;/  in  the  index  furnished  m  your  supplies,  leaving 
blank  the  columns  heailed  Account  Sales  Book. 

No.  200. — If  this  bill  agrees  with  the  goods  received,  turn  to  your  letter  book  and  ascer- 
tain if  the  terms  arc  the  ones  you  rc(|uesled.  N'erify  the  extensions  and  additions,  tlien  jiastc 
the  bill  in  the  Invoice  Book. 

No.  2G1. — Proceed  as  instructed  lor  number  25'J.  Be  sure  to  place  tjie  correct  lot  num- 
ber in  tlie  ujiper  right-hand  corner.     Ilave  you  indexed  this  account  properly? 

No.  'Ht'i. — Bead  this  letter  carefully.  Note  that  Mr.  Creager  as  credit  man  approves  of 
this  re(|uest;  also,  that  Mr.  Brenner  has  not  filled  the  order.  Y'ou  arc  glad  to  have  the 
opportunity  to  make  a  shipment  and,  therefore,  arrange  to  buy  the  quantity  of  apples  desired, 


i 


OFFICE    ROUTINE    AND    ISOOKKEEPING.  Ill 

for  cash,  from  Wm.  F.  Menner,  at  $1.25  jjer  barrel.  Write  au  order  in  liis  favor  for  the 
amount.  Make  an  entry  in  the  Cash  Book  charging  Merchandise  and  extend  the  amount  to 
tlie  General  Column.  Think,  think,  think  before  you  make  an  entry  in  the  Casli  Book  so 
that  you  will  make  a  good,  complete  record,  and  jilace  the  amount  in  the  proper  column.  By 
this  entry  you  have  credited  the  3fain  Store  instead  of  Cash,  because  the  Main  Store  supplies 
the  cash  to  pay  for  the  apples.  Fill  out  an  invoice  of  shipment  (letter  of  advice)  using  one 
of  the  blanks  in  your  package  of  supplies.  On  your  invoice  state  that  the  goods  have  been 
shipped  via  the  shortest  route,  you  naming  the  actual  route  over  which  the  goods  would  bo 
shipped  in  business.     File  the  letter  on  the  Voucher  File. 

Note. — In  business  you  would  be  required  to  pvepare  shipping  receipts  as  ynu  were  previously  instructed. 
Shipping  receipts  will  be  dispensed  with  as  you  have  had  sufficient  practice  in  filling  them. 

Make  an  entry  in  the  Shipment  Ledger  extending  the  amount  into  the  Merchandise 
column  and  into  the  debit  ledger  column.  Be  sure  to  make  this  entry  complete  in  every 
detail.  {See  iUustration  of  tShipment  Ledger,  piage  105.)  Index  the  account  and  check  it  to 
show  that  it  has  been  indexed.  Place  the  shipping  invoice  in  a  properly  addressed  envelope. 
Place  all  documents  in  the  Vouchers  for  Others  receptacle. 

No.  263. — Examine  this  statement  carefully.  The  item  marked  "order"  is  not  to  be 
entered,  as  it  was  entered  when  the  order  was  given.  {See  No.  262.)  For  all  other  payments 
the  cashier  has  received  vouchers  (receipts)  which  she  will  tile  for  reference.  A  cashier 
should  preserve  vouchers  for  money  paid.  Cliai'ge  each  consignment  in  the  Consignment 
Ledger  with  the  charges  paid  for  its  account:  in  the  Cash  Book  enter  the  total  amount  as 
follows:  '■' Cons't  charges  for  day,  20.75,"  ))lacing  the  amount  in  tlie  Consignment  column. 
Think  twice  before  making  an  entry,  so  that  you  will  place  the  amount  in  the  proper  column. 
Review  and  study  the  illiistrated  Cash  Book  if  you  exi)erience  any  difficulty.  Foot  the  col- 
umns of  the  Cash  Book  in  pencil  to  see  if  your  balance  agrees  with  the  balance  as  exhibited 
by  the  Cashier's  Statement.     File  the  Statement  on  the  Voucher  File. 

Write  to  Ayrault's  Produce  Co.,  Baltimore,  Md.,  requesting  them  to  ship  you  50  crates 
of  Cucumbers  to  be  sold  on  their  account  and  risk;  state  that  your  facilities  for  disposing  of 
same  are  exceptionally  good,  and  that  your  total  charges  for  commission,  etc.,  will  be  ten  per 
cent,  of  sales.     Give  such  references  as  you  deem  most  advantageous  to  your  business. 

Write  a  letter  to  A.  H.  Mason  &  Co.,  Richmond,  Va.,  and  ask  them  to  consign  to  you  as 
soon  as  possible  250  Melons  to  be  sold  on  their  account  and  risk.  Mention  the  fact  that  you 
have  a  ready  market  for  Melons  in  your  locality  at  present,  and  that  your  total  charges  for 
disposing  of  them  will  be  ten  per  cent,  of  the  sales.     Give  such  references  as  you  may  think  best. 

Order  from  the  Quaker  City  Fruit  Co.,  Philadelphia,  Pa.,  25  boxes  of  Oranges  and  50 
boxes  of  Lemons  to  be  paid  for  on  delivery.  Give  references  and  request  them  to  send  the 
goods  with  the  utmost  dispatch. 

Have  your  letters  aj^proved  and  take  an  imjiression  of  them  in  your  letter  book.  Place 
them  in  properly  addressed  envelopes.     Do  not  forget  to  index  your  letter  book. 

Posting.  Preparatory  to  posting,  index  and  open  the  accounts  required,  placing  four 
accounts  on  a  page  in  the  Main  Ledger.  Group  the  accounts,  beginning  with  the  Property 
and  Allowance  accounts  on  page  1,  Accounts  Receivable  on  page  3  and  Accounts  Payable  on 
page  6.     Post  and  check  your  posting. 

Present  your  books  for  insjiection. 

Monday,  Jink  8,  ISO- 
No.  'ICA. — Examine  carefulh',  compare  with  your  letter,  then  proceed  as  instructed  for 
iiumlier  259.      Have  you  written  the  lot  number  in  the  proper  place? 


112  Ol-KICE    KUUTINE    AND    HOOKK  hill  M.. 

No.  i(>5. — (/omiHin'  witli  vour  letter:  if  correct,  enter  as  usual. 

No.  2(}(). — Compare  with  your  order,  verify  the  calculations  and  enter  in  the  iiroper 
book.     Do  not  jiay  the  invoice  before  instructed  to  do  so. 

No.  267. — Read  this  letter  carefully.  Does  the  credit  man  approve  of  complying  witii 
■this  reipiest?  Have  the  goods  been  shipjied?  If  so,  make  out  the  invoice  of  shipment  and 
make  the  jirojjer  detailed  entry  in  the  Shipment  Ledger.  The  current  cost  prices  of  the 
goods  are  as  follows:  Oysters,  90^;  Clams,  $1.00;  Oranges,  $3.00;  Lemons,  $2.50.  Write 
an  order  for  $1  favor  of  tlie  City  Carting  Co.  for  drayagc  and  charge  it  to  the  Shipment  in 
the  Cash  Book.  Place  the  order  and  the  shipping  invoice  in  the  proper  receptacle,  first 
inserting  the  invoice  of  shijiment  in  a  correctly  addressed  envelope. 

Sales  for-  tlic  I)a.> .  The  salesman  has  made  the  following  sales  for  which  you  will 
render  bills  and  make  the  jjrojjcr  entries  in  the  Sales  Book.  Be  very  careful  lest  you  make  a 
mistake  by  entering  amounts  in  the  wrong  columns.     Place  the  bills  in  the  projier  receptacle. 

Note. — Written  orders  are  dispensed  with  in  this  business  as  it  is  supposed  that  the  orders  have  been 
given  iu  person  or  over  'he  telephone  l)y  the  purchasers.  In  business  tliese  orders  would  be  entered  in  llie 
Order  IJooli  or  on  order  sheets  by  the  parly  receiving  the  order.  The  credit  man  approves  all  time  orders 
before  the  salesman  is  permitted  to  fill  thein. 

Weet  Bros.,  City,  on  accotmt,  1  box  Lemons;  1  box  Oninges;  1  crate  Cucumbers  (lot  3); 
10  crates  Tomatoes  (lot  2):  2  crates  Onions  (lot  1). 

Use  the  market  quotations  for  this  date  iu  making  the  extensions.  (See  page  109.)  Omit 
the  lot  numbers  on  the  bill  but  be  .t?/rp  to  enter  them  iu  the  Sales  Book.  Extend  the  sales 
from  consignments  to  the  Sales  Column,  and  the  sales  from  the  firm's  merchandise  to  the 
Merchandise  column.  Refer  to  tlie  illustration  of  the  Sales  Book  and  the  description  of 
same  when  in  doubt. 

T.  P.  McMenamiii,  City,  cash,  1  box  Oranges;  1  box  Lemons;  1  crate  Onions  (lot  1); 
1  crate  Tomatoes  (lot  2). 

No  bill  is  to  be  rendered  for  this  or  any  other  cash  sale,  as  a  receipted  bill  is  supposed 
to  have  been  given  when  jiayinent  was  received.  Enter  tlie  total  in  the  Cash  column  and 
make  the  extensions  in  the  other  columns  as  instructed  above.  Place  a  check  mark  in  the 
folio  column  directly  ojiposite  the  purchaser's  name.     Why? 

Earl  &  Rogers,  City,  on  account,  10  crates  Onions  (lot  1);  1  box  Oranges. 

Byrne  &  Collins,  City,  cash,  1  box  Oranges;  3  crates  Onions  (lot  1). 

J.  K.  Williams,  City,  on, account,  10  crates  Onions  (lot  1);  5  crates  Tomatoes  (lot  2):  100 
Melons  (lot  4);  5  crates  Cucumbers  (lot  3). 

Write  an  order  favor  of  tlie  Quaker  City  Fruit  Co.  fur  the  amount  of  their  bill. 

No.  208. — Make  the  entries  from  this  statement  as  instructed  for  number  203.  Be  sure 
to  enter  the  charges  jiaid  on  consignments  in  the  proper  accounts  in  the  Consignment  Ledger, 
and  enter  the  total  in  the  Cash  Book  as  j)reviously  instructed.  Check  in  the  folio  column 
opposite  the  Cash  Sales  entry.     File  the  statement. 

Posting.  First  iiulex,  then  ojien  accounts  with  ])ersoiis  to  whom  sales  on  account  have 
been  nuide.  Post  from  the  Sales  Book.  Next  post  from  the  Sales  Book  to  the  Consignment 
Ledger  all  items  belonging  to  consignments  as  indicated  by  lot  numbers.  Place  a  check 
mark  to  the  left  of  each  lot  number  to  show  that  the  amount  has  been  carried  to  the  Con- 
signment Ledger.  Proceed  as  usual  in  posting  from  tlie  Cash  Book  and  Invoice  Book.  Post 
the  charges  on  the  shipment  to  the  proper  account  iu  the  Shi])nient  Ledger.  Examine  the 
indexes  to  make  sure  that  you  have  nU  aecount.s />ro/w/^  indexed. 


OFFICE    ROUTINE     AND    BOOKKEEPINO.  113 

Write  to  T.  &  H.  Smith  &  Co.,  Pekiii,  111.,  and  give  them  an  order  for  35U  bushels  early  Rose 
Potatoes  at  current  market  prices.  Request  that  they  bill  the  same  to  you  on  30  days  account, 
or  allow  a  discount  of  3  per  cent,  if  paid  within  15  days.  Give  such  references  and  otlier 
information  as  yon  may  think  desirable  to  give  with  a  first  order.  Request  that  the  potatoes 
be  forwarded  by  freight  over  the  most  direct  route,  you  naming-  the  actual  route  that  would 
be  employed  in  business. 

Write  to  The  Harvey  &  Watts  Co.,  Louisville,  Ky.,  i-equesting  them  to  consign  to  you 
50  additional  crates  of  Onions.  No  references  are  required.  State  that  you  expect  to  render 
an  account  sales  for  their  first  shipment  and  remit  for  the  proceeded  in  a  few  days.  Make 
your  letter  as  brief  as  possible. 

Have  your  letters  approved  and  take  an  inn)ression  of  them.      Index  yum-  letter  book. 

Present  all  books  for  insiiection. 

ilONDAV,  JuxE    15,  18'.)-. 

No.  '.i()i>. — *  'ompare  with  your  order,  verify  the  calculations  and  enter  in  the  projier  book. 

No.  270. — Enter  as  usual  if  found  to  lie  correct.  Exercise  care  so  that  you  will  omit 
none  of  the  details. 

No.  271. — Read  this  letter  carefully.  If  everything  is  found  to  be  satisfactory,  jirepare 
the  necessary  document  and  make  the  proper  record.  The  current  cost  price  of  potatoes  is 
40^  per  bushel.  Write  an  order  for  $9.50  to  prepay  freight  and  drayage  charges,  and  make 
the  entry.     Place  all  documents  in  the  ]iroper  recejitacle. 

As  all  the  merchandise  belonging  to  The  Harvey  &  Watts  Co.'s  Consignment  (No.  1)  has 
been  sold,  yon  will  render  them  an  account  of  sales.  Calculate  the  commission  at  the  agreed 
rate,  ascertain  the  net  proceeds  and  make  the  record  for  both  in  the  account.  Write  an 
order  for  the  amount  of  the  proceeds,  requesting  that  a  bank  draft  be  remitted  in  its  stead. 
Remove  the  sheet  containing  the  account  by  tearing  on  the  ])erforated  line,  and  take  an 
impression  of  same  in  your  Impression  Account  Sales  Book.  Extend  the  amount  of  the  com- 
mission to  the  outer  column.  Index  this  ncconntnnmcrimUi/  and  alphabetically  in  the  same 
index  used  for  the  Consignment  Ledger.  Make  the  entry  for  the  net  proceeds  in  the 
Cash  Book,  extending  the  amount  to  the  Consignment  column.  Write  the  folio  number 
you  have  just  placed  in  the  index  in  the  folio  column  of  the  Cash  Book,  opposite  the  entry 
just  made  to  show  where  the  account  of  which  this  entry  is  a  part  has  been  carried.  Address 
an  envelope  to  the  consignors,  place  it,  the  account  of  sales  and  your  order  rinfolded  in 
Vouchers  for  Others.  The  cashier  will  insert  the  account  sales  and  the  remittance  after  she 
has  secured  the  bank  draft  called  for  by  the  order. 

Sales  for  the  Day.  The  salesman  has  made  the  following  sales.  Render  liills  f(U-  all 
sales  on  account  and  make  the  entries  for  all  sales. 

Weet  Bros.,  on  account,  1  bos  Oysters;  3  boxes  Clams:  1  crate  Onions  (lot  5);  10  crates 
Tomatoes  (lot  2);  50  melons  (lot  4);  5  crates  Cucumbers  (lot  3). 

A.  S.  Longenecker,  cash,  1  box  Oranges;  3  boxes  Lemons;  5  crates  C'ucumbers  (lot  3); 
10  crates  Tomatoes  (lot  2). 

Earl  &  Rogers,  on  account,  50  Melons  (lot  4);  I  box  Lemons;  30  crates  Tomatoes  (lot  2); 
10  crates  Cucumbers  (lot  3). 

Write  an  order  favor  Frank  J.  Miller  for  the  amount  of  his  bill  less  the  discount  allowed. 
Make  the  proper  record  of  both  the  discount  and  the  amount  of  the  order  in  the  Cash  Book. 

No.  272. — Make  the  entries  for  all  items  on  this  statement  that  are  not  marked  "order.' 
Have  you  compared  your  Cash  Sales  with  the  amount  received  from  that  source? 


114  OFFICE    ROUTINE    AND    BOOKKEEPING. 

PostliiE:.  Imlex,  o)>cn  accounts  jiiid  post  as  i)rcviously  instructed.  Check  over  your 
posting. 

Write  a  ifiU'r  to  F.  i>.  I{<jystcr  &  Co.,  Cuhunbus,  Ga.,  requesting  them  to  ship  to  you  25 
barrels  or  more  of  Sweet  l'otat(jes  to  be  sold  on  their  account.  Give  them  all  necessary  infor- 
mation that  need  be  given  with  a  first  request. 

Write  to  Ilancock  &  Co.,  Montgomery,  Ala.,  and  request  them  to  ship  to  you,  by  express, 
you  naming  the  express  company,  10  crates  of  Cabbage  to  be  sold  on  their  account  and  risk. 
Give  such  information  and  references  as  you  may  think  best. 

Write  to  the  Santa  Clara  County  Fruit  Exchange,  San  Jose,  California,  re(iuesting  them 
to  consign  to  you  500  Pineap])lcs  to  be  sold  on  their  account  and  risk.  Give  references  and 
other  necessary  particulars. 

Have  your  letters  approved  and  taku  an  impression  of  them.  Do  not  forget  to  index 
your  letter  book  to  date. 

Present  all  books  for  inspection. 

MuxiJAY,  JuxK  22,  ISO- 
No.  '21'.^. — Conipure  with  yuur  letter  of  June  15.     Enter  if  found  correct  in  every  detail. 
No.  074. — Proceed  as  willi  iiuinhcr  27,5  if  found  to  be  correct  in  all  details. 

No.  «75. — Examine  very  carefully.  Note  that  the  bank  draft  has  been  received  by  the 
cashier.  File  this  document  on  the  Voucher  File,  but  do  not  make  the  entry  for  the  pro- 
ceeds until  the  cashier  renders  her  daily  statement. 

No.  270. — Read  this  letter  carefully.  The  merchandise  necessary  to  fill  this  order  was 
supplied  by  the  Main  Store  and  will  be  charged  to  the  Uranch  Store  in  the  cashiers  daily 
report.  Write  an  order  for  75  cents  favor  of  the  City  Carting  Co.  to  ])ay  for  drayage  and 
be  sure  to  make  the  correct  entry,  placing  the  amount  in  the  proper  column.  Prepare  the 
shipping  invoice  and  make  the  entry.     The  current  cost  price  of  Flour  is  $3.75  per  barrel. 

Sales  for  tlie  Day.  The  salesnum  has  made  the  following  sales.  Render  bills  for  all 
sales  on  account  and  make  the  entries  for  all  sales. 

Peter  Boyer,  on  account,  2  brls.  Sweet  Potatoes  (lot  6);  1  box  Lemons;  3  crates  Cabbage 
(lot  7);  10  bu.  Potatoes;  10  crates  Cucumbers  (lot  3). 

Chas.  A.  Hall,  cash,  3  boxes  Clams;  2  boxes  Oysters;  50  Melons  (lot  4):  Id  crates 
Cucumbers  (lot  3). 

H.  II.  Uerdle,  cash,  7  crates  Cabbage  (lot  7);  4  crates  Cucumbers  (lot  3);  10  boxes  Clams; 
10  boxes  Oysters;  10  crates  Tomatoes  (lot  2);  1  bri.  Sweet  Potatoes  (lot  6). 

n.  J.  Pierrard  &  Son,  on  account,  5  crates  Onions  (lot  5);  10  bu.  Potatoes. 

Write  an  order  favor  of  T.  &  II.  Smith  &  Co.  for  the  amount  of  their  invoice,  less  the 
agreed  discount,  and  make  the  entry. 

No.  277. — Verify  this  statement.  Make  the  entries  therefrom  for  all  items  not  marked 
"order."  Be  sure  to  place  all  amounts  in  the  projier  columns.  Refer  to  the  illustration  and 
explanation  of  the  Cash  Book  when  in  douiit. 

Posting.     Index  and  post  the  books.     Check  over  the  posting. 

Order  from  Wilhoyte,  Barrett  &  Co.,  Rochester,  X.  Y.,  100  barrels  of  Apples,  requesting 
them  to  bill  same  on  30  days  account  and  name  their  best  discount  if  paid  within  10  days. 
Give  references  and  other  requisite  information. 

Have  your  letter  ajiprovcd  and  take  an  imjiression  of  same.     Index  your  letter  book. 

Present  books  for  insi)ection. 


OFFICE    ROUTINE    AND    BOOKKEEPING.  115 

Monday,  June  :.'n,  189-. 

No.  278. ^Examine  this  account  of  sales  carefully.  Have  the  proceeds  been  received? 
Do  not  make  an  entry  in  the  Cash  Book  for  the  proceeds  until  you  receive  the  cashier's  daily 
statement.     File  the  account  of  sales  on  the  Voucher  File. 

No.  279. — Kefer  to  your  order  of  the  22d  instant.  Note  that  the  goods  were  not  all 
received.  AVrite  to  the  parties  requesting  that  they  make  good  the  shortage  or  that  they 
send  you  a  credit  memorandum  for  the  amount  of  the  shortage.     Do  not  enter  the  bill  now. 

No.  280. — Examine  carefully.     If  found  correct  enter  as  usual. 

No.  281. — Read  this  letter  carefully.  Has  this  request  been  complied  with  and  is  it 
approved  by  the  credit  man?  If  so,  prepare  the  necessary  document  and  make  the  entries. 
The  current  cost  ju-ice  of  Lemons  is  ^2.50. 

No.  282. — Proceed  as  instructed  for  numbers  275  and  278. 

Sales  for  the  Day. — The  salesman  has  made  tlie  following  sales.  Record  all  sales  in 
the  Sales  Book  and  render  bills  for  all  sales  on  account. 

S.  H.  Esarey  &  Co.,  on  account,  2  boxes  Oranges;  1  box  Lemons;  .5  crates  Tomatoes  (lot  2); 
2  brls.  Sweet  Potatoes  (lot  (i);  2  boxes  Oysters;  2  boxes  Clams. 

S.  S.  Neff,  cash,  4  crates  Onions  (lot  5);  2  boxes  Clams;  4  crates  Tomatoes  (lot  2):  1  box 
Oranges;  1  box  Lemons. 

J.  P.  Batson,  on  account,  10  crates  Tomatoes  (lot  2);  10  bu.  Potatoes;  2  brls.  Sweet 
Potatoes  (lot  6);  10  doz.  Pineapi>les  (lot  8). 

Philip  Smith,  on  account  10  doz.  Pineapples  (lot  8);  5  brls.  Sweet  Potatoes  (lot  C);  1 
box  Oranges;  1  box  Lemons;  10  crates  Onions  (lot  5);  5  crates  Tomatoes  (lot  2). 

Isaac  Van  Winkle,  on  account,  1  box  Lemons;  2  brls.  Sweet  Potatoes  (lot  0);  5  crates 
Tomatoes  (lot  2);  5  crates  Onions  (lot  5);  4  dozen  Pineapples  (lot  8);  5  bushels  Potatoes. 

Herrmann  Bros.,  cash,  5  dozen  Pineapples  (lot  8);  1  box  Lemons;  3  brls.  Sweet  Potatoes 
(lot  G);  1  box  Oranges. 

Render  an  account  of  sales  for  consignment  number  3.  Calculate  the  commission,  ascer- 
tain the  proceeds  and  write  an  order  for  the  amount  of  the  proceeds,  making  it  payable  by 
bank  draft.  Prepare  all  the  documents  as  instructed  for  consignment  number  1  and  do  not 
fail  to  take  an  impression  of  the  account  of  sales. 

Render  an  account  of  sales  for  consignment  number  4,  referring  to  instructions  given  for 
numbers  1  and  3. 

Render  an  account  of  sales  for  consignment  number  7,  following  previous  instructions. 
Don't  fail  to  index  every  account  in  the  Account  Sales  Book. 

No.  283. — Examine  carefully  and  make  the  entries  for  all  items  not  marked  '"order." 
File  on  the  Voucher  File. 

Posting.     Index  and  post  all  the  books.     Check  over  the  posting. 
Present  all  books  for  inspection. 

Tuesday,  Juxe  30,  189-. 

No.  284. — Examine  very  carefully.  Ordinarily  the  entry  for  this  document  would  be 
made  in  the  Journal,  debiting  the  parties  who  sent  it  and  crediting  merchandise.  In  the 
absence  of  a  Journal  the  entry  may  bo  made  in  the  Sales  Book  because  it  is  in  effect  the  same 
as  a  sale;  i.  e.,  you  sold  them  the  shortage.  This  you  will  do  by  writing  the  name  of  the 
parties  and  the  description  appearing  on  the  document  in  your  Sales  Book,  extending  the 
amount  into  the  Merchandise  column.    Enter  voucher  number  279. 


116  OFl-lLlC    KOUTINE    AND    BOOKKEEl'ING. 

Foot  till'  ,<iiL'ui;il  columns  in  all  tlu'  books.  Next  rule  all  the  books  referring  to  the  illus- 
trations of  the  various  books  to  make  sure  that  vou  arc  doing  it  correctly.  Post  the  totals 
of  the  various  columns  to  their  respective  accounts  in  the  Main  Ledger. 

>rake  an  al)stract  of  the  balances  of  the  various  accounts  in  the  Consignment  Ledger. 
See  if  the  total  of  these  balances  equals  the  balance  of  the  Consignment  Account  in  the 
Main  Ledger. 

Make  an  abstract  of  the  accounts  in  tlio  Shipmeut  Ledger  and  j)rove  it  with  the  .Ship- 
ment account  in  the  Main  Ledger. 

Take  a  Trial  Balance. 

Mr.  Brenner  makes  a  verbal  report  of  the  goods  on  hand,  not  belonging  to  consignments, 
which  are  as  follows:  Md.si;. — 1  box  Oranges,  ^3.00;  4  boxes  Lemons  at  $2.50;  15  bu.  Pota- 
toes at  40'/:  !»i;  brls.  Apples  at  $1.10.  FfRxiTCRE  and  FixTfUES  (estimated)  *r.JO.  Com- 
mission.    Earned  on  sales  belonging  to  unclosed  consigiiinents,  31.20. 

Make  an  Inventory  of  Resources  and  Liabilities  and  a  Balance  Sheet.  Close  all  accounts 
that  show  losses  or  gains.  Carry  the  Not  Gain  to  the  account  with  the  Main  Store  in  tlm 
Cash  Book.      Balance  and  rule  the  ^fain  Store  Account. 

Present  all  books  for  examination  and  a])pri)val. 

QuK.STiONS. — What  is  meant  by  a  Branch  House?  What  is  meant  by  the  term  Credit 
^lan?  From  what  sources  do  credit  men  obtain  their  knowledge  of  customers?  Describe- 
the  commercial  or  mercantile  agencies.  How  many  kinds  are  there?  Why  is  it  neces.sary 
to  know  a  jierson's  moral  as  well  as  financial  standing  before  giving  him  credit?  Name 
some  of  the  principal  mercantile  agencies.  Pescribe  the  Loose  Leaf  Ledger.  What  advan- 
tage is  there  in  using  the  Loose  Leaf  Method?  Can  it  be  used  in  other  lines  of  business?' 
Explain  how  a  consignment  is  entered  when  the  Loose  Leaf  Method  is  used.  When  a  binder 
is  not  used,  by  what  means  arc  the  accounts  kept  in  order?  Explain  the  tise  of  the  Inij)res- 
sion  Account  of  Sales  Book.  In  wliat  way  is  this  a  labor-saving  book?  Wliat  advantage  is 
there  in  a  numerical  index?  Wherein  does  a  Sales  Book  for  the  commission  business  differ 
from  an  ordinary  Sales  Book?  Why  are  cash  sales  checked  in  both  the  Sales  Book  and  the 
Cash  Book?  Explain  the  use  of  Lot  Numbers.  What  advantage  is  there  in  nsing  special 
columns  in  the  Cash  Book?  Describe  the  Shiimient  Ledger.  What  advantage  do  you  see 
in  combining  the  Shij)nient  Book  and  the  ordinary  Shijiment  Ledger?  Explain  the  method 
of  using  more  than  one  Ledger.  Why  are  accounts  with  the  subordinate  Ledgers  kept  in 
the  Main  Ledger?  Is  it  necessary  to  take  a  Trial  Balance  of  all  the  Ledgers?  What  is 
nieant  by  an  abstract  of  a  Ledger?  What  is  the  object  of  a  Letter  Book?  AVhat  is  the 
object  of  indexes  to  books  of  account  and  record?  When  should  an  account  or  record  be 
indexed?  Do  you  understand  the  use  of  the  vowel  index?  What  advantage  is  there  in 
jiaging  before  posting?  Explain  the  method  of  keeping  an  account  with  the  Main  Store. 
If  you  were  keeping  the  l)ooks  of  the  Main  Store  would  you  be  able  to  keep  the  account 
with  the  Branch  Store?     What  is  a  Memorandum  of  Credit? 


OFFICE    ROUTINE    AND    BOOKKEEPING.  117 

DEPARTMENT     STORE     BUSINESS. 

To  the  Student.  In  your  ])ruvious  work  you  nuulu  ull  records  from  tlu'  business 
documents  received  ;ind  issued.  In  your  subsequent  work  the  use  of  vouchers  will  be  dis- 
continued, as  it  is  believed  that  the  advanced  student  will  derive  valuable  mental  discipline 
in  making  records  from  a  statement  or  history  of  the  transactions,  instead  of  from  the  docu- 
ments that  vouch  for  and  reiJreseut  business  transactions.  In  making  records  from  a  state- 
ment or  history  of  the  transactions  the  student  should  permit  his  imagination  to  supply  the 
correct  form  of  document  for  each  transaction,  if  lie  desires  to  do  the  work  effectively  and 
intelligently.  The  ability  to  add  accurately  and  with  facility  will  be  found  to  be  essential 
to  performing  the  following  work  successfully. 

Plan  of  The  Work.  It  is  supposed  that  you  will  continue  as  manager  of  the  Creager 
Commission  Company  .J.  A.  Luman,  one  of  the  jn-oprietors  of  the  City  Department  Store, 
requests  you  to  open  the  books  for  that  business.  This  you  agree  to  do  after  regular  busi- 
ness hours. 

City  Department  Store.  The  City  Department  Store  is  to  be  conducted  bv  a  part- 
nershij)  to  commence  on  this  date  (July  1).  The  members  of  the  partnershij)  have  ])revi- 
ously  been  engaged  in  business  for  themselves  in  different  jjarts  of  the  city.  They  arc  as 
follows:  J.  A.  Luman,  dealer  in  shoes,  937  Spruce  street;  H.  T.  Williams,  dealer  in  gloves, 
1710  Broad  street;  Thos.  H.  Betts,  dealer  in  hats,  1848  Twelfth  street;  C.  E.  Evans,  dealer 
in  dress  goods,  112  Washington  street;  Abraham  Levy,  dealer  in  clothing,  265  South  street. 
Each  of  the  ])artners  invests  the  resources  and  good  will  of  his  business  and  the  liabilities 
of  each  are  to  be  paid  by  the  partnership.  {See  pca/e  132.)  As  their  investments  are 
unequal  in  amount,  each  partner  is  to  receive  interest  on  his  investment  and  is  to  be  charged 
interest  on  all  withdrawals  for  the  time  tliey  are  withdrawn. 

Note. — la  business  a  partnersliip  agreement  stipulating  the  lights  and  privileges  of  the  partners  and 
the  conditions  under  which  the  partnersliip  was  formed  would  be  drawn  up  and  five  copies  executed,  so 
that  each  of  the  partners  would  have  a  copy.  As  you  have  had  ample  practice  in  drawing  up  partnership 
agreements,  it  will  not  be  necessary  for  you  to  draw  up  one  in  this  case.  When  partnership  agreements 
are  of  a  complicated  nature  it  may  be  well  to  have  them  drawn  up  by  a  competent  attorney,  in  order  to 
guard  against  liligation  in  the  future. 

Advaiitases  of  a  Department  Store.  The  advantages  to  be  derived  from  merging 
several  separate  businesses  into  a.  deiiartnient  store  are  many.  The  advantages  of  a  com- 
bined and  increased  capital  are  unquestioned  in  every  line  of  business.  Among  the  advan- 
tages that  particularly  jsertain  to  the  department  store  business  may  be  mentioned  the 
saving  in  advertising,  as  a  department  store  can  be  advertised  for  proportionately  less  money 
than  it  would  require  to  advertise  as  many  separate  businesses  as  there  are  departments  in 
the  store.  Department  store  advertisements,  as  a  rule,  are  more  effective  than  specialty 
store  advertisements;  this  is  so  because  they  are  more  interesting  to  a  greater  number  of 
people,  on  account  of  the  number  and  variety  of  articles  to  be  advertised.  Customers  or, 
visitors  in  one  dejiartment  are  very  apt  to  inspect  and  familiarize  themselves  with  the  goods! 
in  other  dej)artments;  hence,  each  department  assists  in  advertising  every  other  department.' 

Subdivision  of  Merchandise  Account.  In  this  business  the  merchandise  will  be 
divided  into  five  departments,  as  follows:  Shoes,  Gloves,  Hats,  Dress  Goods,  Clothing.  A 
separate  account  will  be  kept  with  each  department  instead  of  including  all  the  goods  uniler 
the  general  title.  Merchandise. 

As  the  store  and  counting  room  are  both  divided  into  departments  the  student  will  be 
obliged  to  exercise  care,,  so  that  he  will  not  confuse  the  dcjiartments  of  the  store  with  those 


lis  OFFICE    ROUTINE    AND    UOOKKEEl'ING. 

of  tlic  counting  room.  lie  slionUl  renieniluT  tliat  Shoe  Department,  Glove  Department, 
Hat  Department,  Dress  Goods  Department,  ami  Cloiliint;  De)iartment  arc  the  departments 
of  the  store;  the  other  departments  mentioned  in  the  following  pages  refer  to  the  counting 
room  work. 

Object  of  'J'liis  Kiisinoss.  The  object  of  this  business  is  to  familiarize  the  student 
with  tlie  ordinary  routine,  forms,  books  and  methods  of  keeping  them,  that  are  similar  to 
those  used  in  the  best  modern  department  stores.  To  aecomi)lish  this  successfully  the  stu- 
dent will  be  called  upon  to  do  the  work  in  each  of  the  departments  into  which  tiie  counting 
room  work  is  divided.  One  of  the  important  things  for  the  student  to  learn  is  the  relation 
which  one  dejiartment,  book  or  form  sustains  to  the  other  departments,  books  or  forms,  as 
described  in  tlic  fnlli.witirr  paragraphs. 

Division  ol'  iiiihor.  In  the  larger  de]iarinK'nl  stores  tlie  counting  room  work  is 
divided  into  dei)artments.  While  the  number  of  departments  varies  in  different  counting 
rooms,  vet  the  relation  they  sustain  to  eacli  otlier  will  be  fully  exemplified  and  explained 
in  this  business  where  the  work  is  divided  into  five  departments,  viz.:  General  Bookkeejiing 
Department,  Cash  Department,  Credit  JIan's  Department,  Time  Sales  Department  and 
Purchases  Dci)artment.  Other  departments,  sucli  as  Kebate  Department,  Goods  Returned 
Dejiartment,  Collection  and  Dunning  Department,  etc.,  may  be  created  whenever  occasion 
demands.  When  the  work  that  comes  under  these  heads  is  not  sufficient  to  justify  tlie 
creation  of  a  department  it  is  attended  to  by  tlie  General  Bookkeeping  Department.  The 
Credit  Man's  Dejjartnient  and  the  Collection  and  Dunning  Departments  are  not,  strictly 
speaking,  counting  room  de])artments,  but  are  here  treated  as  such  owing  to  tlieir  intimate 
relation  to  counting  room  work.  Since  the  work  of  these  departments  pertains  largely  to 
the  financial  management  of  llu'  business  they  are  usually  in  charge  of  members  of  the  firm. 

(Jenerul  IJookkiM'itini:  Depart  incut.  The  General  Bookkeeping  Department  is  in 
charge  of  llie  general  bookkeeper,  or  iiead  bookkeeper,  as  he  is  sometimes  called.  He  often 
has  one  or  more  assistants,  the  number  depending  u))on  the  volume  of  work  to  be  done.  In 
this  department  the  private  accounts  of  the  firm  arc  kept,  such  as  investment,  property,  and 
allowance  accounts.  In  addition  accounts  with  all  the  other  counting  room  departments 
and  also  with  the  merchandise  dejiartmeiits  are  kept  so  that  synoptical  or  summary  infor- 
mation of  any  part  of  the  business  may  be  obtaini'd  by  consulting  the  books  in  the  General 
Bookkeejiing  Department.  To  obtain  detailed  information  of  any  department  of  counting 
room  work  it  will  be  necessary  to  consult  the  books  in  that  department.  The  books  or 
accounts  containing  the  detailed  information  should  agree  with  tiie  corresponding  summary 
or  synoptical  accounts  in  the  books  of  the  General  Bookkeei»ing  Deiiartmcnt.  In  the 
counting  rooms  of  some  dejiartment  stores  the  agreement  of  the  books  is  verified  daily,  in 
others  weekly,  and  in  others  monthly. 

Cash  Department.  This  dejiartmenl  is  in  charge  of  the  cashier.  When  the  volume 
of  cash  business  is  large  several  assistants  are  required.  The  duties  of  the  cashier  are 
briefly  exjilained  on  jiages  01  and  94.  The  cashier  makes  an  abstract  report  to  the  General 
Bookkeejiing  Dejiartment  daily;  also,  detailed  rejiorts  to  all  other  dcjiartments  for  whose 
account  cash  has  been  received  or  jiaid  out.  These  detailed  reports  are  verified  and  com- 
jiared  with  the  abstract  rcjiort,  in  the  General  Bookkeeping  Department,  before  they  are 
handed  to  the  other  dejiartments.  The  forms  used  to  keeji  the  accounts  of  the  Cash  Depart- 
ment, and  the  relation  which  this  department  sustains  to  other  dcjiartments  are  explained 
and  illustrated  on  jiages  ViC,  127,  128  and  129. 


OFFICE    ROUTINE    AND    BOOKKEEPING.  119 

Credit  Man's  Department.  Tlie  credit  man  has  charge  of  this  departmeut.  Assist- 
sints  are  often  employed  to  attend  to  tlie  minor  details  and  do  the  clerical  work  of  the 
department.  The  duties  of  the  credit  man  are  fully  explained  on  i)age  99.  The  relation 
which  the  Credit  Department  sustains  to  other  departments  of  the  counting  room  is  explained 
on  page  123. 

Time  Sales  Department.  The  work  in  this  dejiartment  is  divided  alphabetically 
among  as  many  bookkeepers  as  are  necessary.  In  this  business  four  Time  Sales  bookkeep- 
ers will  be  employed;  the  first  will  kcej)  the  accounts  from  A  to  G,  the  second  from  H  to 
M,  the  third  from  Mc  to  R,  and  the  fourth  from  S  to  Z.  Frequently  there  are  as  many,  or 
more,  bookkeepers  as  there  are  letters  in  the  alphabet;  a  large  department  store  in  one  of 
our  large  cities  has  its  Time  Sales  books  divided  alphabetically  into  one  hundred  and  five 
divisions,  each  division  being  in  charge  of  a  separate  bookkeeper.  Some  idea  of  the  magni- 
tude of  a  great  dejiartment  store  may  be  formed  when  it  is  stated  that  in  the  above  men- 
tioned store  only  about  one-seventh  of  all  the  sales  are  time  sales.  The  documents  from 
which  the  Time  Sales  bookkeepers  make  their  records  are  all  received  from  the  General 
Bookkeeping  Department,  where  they  have  been  verified  and  compared  with  the  abstract 
reports  furnished  by  the  other  departments.  The  method  of  keeping  the  Time  Sales  accounts 
and  the  forms  used  are  explained  and  illustrated  on  pages  122,  123,  124  and  12G. 

Purchases  Department.  The  duty  of  the  bookkeepers  in  this  dejiartment  is  to 
verify  the  correctness  of  the  invoices,  keep  a  systematic  account  of  them  and  see  to  it  that 
they  are  promptly  paid  when  due,  or  that  they  are  discounted  before  the  discount  time 
expires.  No  invoices  should  be  entered  which  have  not  been  checked  up  by  the  receiving 
clerk  and  the  prices  on  which  have  not  been  approved  by  the  buyer.  The  head  buyer  usually 
lias  the  supervision  of  the  work  in  this  department.  The  work  in  tliis  department,  like 
that  in  all  other  departments,  is  comjjared  and  verified  by  the  General  Bookkeeping  Depart- 
ment. For  illustration  and  explanatioii  of  forms  and  books  used  in  this  department  see 
pages  120,  121  and  122. 

Books  and  Forms  Used.  The  books  and  funns  used  to  illustrate  a  method  of  keep- 
ing the  accounts  in  a  department  store  are  as  follows:  Abstract  Purchase  Book,  Depart- 
ment Charges  form.  Abstract  Purchase  Ledger,  Time  Index,  Clerks'  Summary  Sheets, 
Abstracts  of  Time  Sales,  Summary  of  Daily  Sales,  Sales  Ledgers,  General  Ledger,  Cashier's 
Abstract  Statements,  Cashier's  Detailed  Statements,  Abstracts  of  Cash  Sales,  Abstract  Cash 
Account,  Pay  Koll.     Other  books  and  forms  than  the  above  named  are  often  used. 

In  no  other  line  of  business  has  there  been  so  great  an  innovation  made  by  the  loose-leaf 
method  of  keejiing  accounts  as  in  department  stores.  The  reason  is  apparent.  Were 
bound  books  used,  duplicate  sets  for  altei'nate  days  would  be  necessary,  and  tliese  would  be 
continually  going  the  rounds  of  the  counting  room  and  the  various  departments  of  the  store. 
When  a  book  is  in  use  by  one  clerk  or  bookkeeper  the  others  who  desire  to  use  it  are  obliged 
to  wait  until  he  is  through  with  it.  Another  objection  is  that  the  records  are  not  continu- 
ous, owing  to  the  fact  that  two  sets  are  used;  besides  dishonesty  is  fostered,  as  false  entries 
are  not  so  easily  detected  in  a  fragmentary  system  of  accounting,  scattered  about  in  two  sets 
of  books,  as  when  the  records  are  in  consecutive  order. 

With  the  loose-leaf  method  all  the  vouchers  and  records  are  kept  in  consecutive  order. 
The  vouchers  representing  the  transactions  for  each  day  pass  from  department  to  depart- 
ment until  they  reach  their  destination,  when  they  are  filed  away  in  consecutive  order. 
When  this  method  is  used  it  is  a  comparatively  easy  matter  to  refer  to  any  voucher  or  record 


1 20 


OKKICK    ROUTINE    AND    liOOK  K  liKI'l  NU 


thereof.  In  sliorl,  when  doeiunenls  have  to  pass  througli  several  departnients  >t  i&a  decidei! 
advantage  to  use  the  loose-leaf  method. 

Abstract  Purchase  Kook.  In  this  book  an  entry  is  made  for  each  iiivoiee  that  is 
purciiased.  (See  iUuslralioti  Mow.)  When  a  bill  is  ready  to  be  entered  a  serial  num- 
ber is  written  upon  it,  or  stamped  ujion  it  with  an  automatic  numbering  machine.  Tiiis 
number  is  also  written  or  ])rinted  in  tlie  column  headed  No.  in  the  Abstract  Purchiise  Hook. 
The  amount  of  each  bill  is  entered  in  the  (olal  column,  while  the  amount  of  goods  belonging 
to  each  dejiartment  is  entered  in  the  column  bearing  the  proper  heading.  Whenever  desired 
the  entries  in  the  department  columns  may  be  proven  by  ascertaining  their  total  and  com- 
paring it  with  the  footing  of  the  total  column,  as  shown  in  the  illustration.  All  bills  are 
filed  in  nunu'rical  order  iis  soon  as  entered.  When  this  method  is  used  the  entries  are 
indexed  and  ])osted  to  ledger  accounts. 

If  desired,  the  invoices  could  be  ]iasted  in  an  Invoice  Book  as  previously  instructed. 
When  this  is  done  the  Invoice  Book  is  so  arranged  that  the  invoices  are  pasted  on  the  left- 
hand  ])ages,  while  llic  department  columns  are  ruled  on  the  right-haiul  i)ages. 


AHSTItACT    riKCH.\.SE    BoOK. 


Date. 

No. 

L.F. 

Accounts  to  »b  Ckeditbd. 

Total.  I 

Shoes. 

G  LOVES. 

Hats. 

Dress 
Goods. 

CUITH- 
I.NO. 

18»-. 

1 

June 

12 

1 
2 
3 
4 
6 
8 
7 
8 
9 
10 
11 
12 
13 

.Murks  nros.. 

Parindjfe\-  Uictninlson. 

Lclinori  A:  Co.. 

Lit  Hio.s., 

Strawbri<l^t'  &  Clotllier, 

.Ino.  C.  ljuwis, 

liacoii  A:  O)., 

(Jiinbcl  Itros., 

.Ino.  A.  Seeds  &  Co., 

Geo.  Krenx-r  ,N;  Co., 

Isaac  Witiner 

Aiiiircw  Mi'unier, 

Thos   Ilallielil  &Co., 

923 
134.'> 
1722 
642 
839 
787 
ISK 
719 
827 
1142 

;»- 

122t) 

80 
9« 
92 
20 
«9 
■M 
8(i 
41 
89 
81 
20 
94 
2U 

1723 

719 
4.il 

92 

41 
20 

922 

787 

1226 

80 
34 

26 

1345 

827 
387 

96 

1 
89 
94 

839 
1142 

09 
81 

642 
1532 

20 
86 

14 

Ilaidlii  Deweesi-  \-  Son, 

981 

9.'> 

961  951 

IS 

.^.  \,.  Sulzer  \-  liro.. 

1482 

2."> 

1 

1482 

35 

16 

Schwartz  \  Kral't, 

192li 

8.-i 

1928 

VH 

17 

N.  Knox  &  Stins, 

1424 

■M 

1421 

■m\ 

18 

Writflit  Jt  Lnckey. 
Shoes  Dr., 
Cloves  Dr., 
Hals  Dr., 
Dress  (ioods  Dr., 

829 

1. 

829 
3722 
2li:iii 
;i9Sii 

29IU 

r. 

70 
411 
Oil 
4.'i 

2938 

40 

.i'.i-(i 

1 

list 

2964 

4.5 

Cloihinjf  Dr., 

Puri'hasc  L4■^i^rer  .-Vi'count  Cr.. 

78 

.V),S4 
19l9;l 

14 

78 

5.584 

14 

1H193 

Department  Chari^es  Form.  \\  luu  liie  departnieius  are  (juite  numerous  the  above 
plans  for  entering  invoices  would  not  be  jiractical,  as  but  a  few  entries  would  ajijiear  in  the 
department  columns,  consequently  too  much  space  would  be  wasted.      In   liiat  event  the 

department  columns  are   itted    from    the   Abstract   Purchase   Book   and   a   Department 

Charges  form  as  illustrated  on  jiage  Vi\  is  used  to  receive  all  charges  to  departments.  The 
columns  headed  Serial  Xo.  receive  the  serial  number  as  it  is  written  or  stamped  upon  the 
invoice  and  entered  in  the  Abstract  Purchase  Book,  which  will  aid  very  materially  in  check- 
ing for  errors  or  omissions,  should  the  total  of  the  department  ciiarges  fail  to  agree  with  the 
footing  of  the  money  column  in  the  Abstract  Purchase  Book.  When  this  form  is  used  an 
ordinary  .Journal,  or  a  i)art  of  it,  will  serve  the  purpose  of  the  Abstract  Purchase  Book.  In 
the  illustration  on  jiage  Ix'l  the  numbers  to  the  left  of  the  footings  are  the  folio  numbers. 


OFFICE    ROUTINE    AND    BOOKKEEPINf;. 

Department  Charges^Month  of  Jtdy,  189- 


121 


Shoes. 

Gloves. 

Hats. 

DKESS  CiOODS. 

C'LOTniNf;. 

Serial 
No. 

Amount. 

Serial 

No. 

Amount. 

Serial 
No. 

Amount. 

Serial 

No. 

Amount. 

Serial 
No. 

Amount. 

3 

8 
11 
18 

13 

1733 
719 
451 
829 

3722 

92 

41 
20 
17 

70 

1 

6 

13 

14 

923 

787 

1226 

2936 

80 
34 
26 

40 

i       2 

9 

12 

17 

15 

1345 

827 

3S7 

1424 

3986 

96 
89 
94 
30 

09 

5 
10 
14 

16 

889 

1143 

981 

69 

81 
95 

45 

4 

7 
15 
16 

17 

642 

1532 
1482 
I'.I-.T, 

20 

8i) 

25  1 

s;; 

\  1 

2964 

Abstract  Purchase  Ledger.  In  this  busiuess  the  entries  will  be  made  in  an  Abstract 
Purchase  Ledger  as  illustrated  below.  The  advantages  of  this  method  arc:  (1)  e.xcejit- 
ing  the  footing  of  the  Amount  of  Purchases  column,  there  is  no  posting  to  be  done,  (2)  the 
terms,  due  date  and  discount  time  limit  are  recorded  in  connection  with  the  entry,  (3)  pro- 
vision is  made  to  enter  the  payments  and  discounts  directly  opposite  each  bill,  (4)  accounts 
are  indexed  by  their  serial  numbers  instead  of  by  the  pages  on  which  they  are  entered.  As 
it  is  impossible  to  keep  a  systematic  account  of  discounts  in  this  book,  the  detailed  account 
of  them  is  kept  on  the  cashier's  detailed  statements,  while  the  total  of  each  detailed  state- 
ment is  placed  on  the  Cashier's  Abstract  Statement,  and  from  there  carried  to  the  Abstract 
Cash  Account.  The  footing  of  Discounts  column  of  the  Cash  Account  is  posted  to  the  debit 
of  Purchase  Ledger  account  and  to  the  credit  of  Merchandise  Discounts  account  in  the  Gen- 
eral Ledger.  {See  iUiis-frafioii  of  Cashier's  Abstract  StaleinenljjKige  127,  andaf  Abstract  Cash 
Account,  page  129.) 

Abstract  Purchase  Ledger. 


Cr. 

Dll. 

Dr. 

Last 

Date  of 
Invoice. 

No. 

Tnde.x 
Check. 

Accounts  Credited  and  Terms. 

Day 

of 

Disct. 

Due 
Date. 

Amouut  of 
Purchases. 

Amount 
Paid. 

Discount. 

Date. 

18ft-. 

.lulv 

1 

1 

Marks  Bros..  2/10.  net  30, 

7/11 

7/31 

922 

80 

904 

34 

18 

46 

7/11 

June 

36 

3 

Partridge  &  Hichariison.  2/5,  net  30, 

7/1 

7/26 

1345 

96 

1319 

04 

26 

92 

7/1 

28 

3 

Lennon  &  Co.,  3/10,  net  60  days, 

7/8 

8/28 

1723 

92 

1671 

23 

51 

69 

7/8 

26 

4 

Lit  Brotlier.s,  2/5,  net  30, 

7/1 

7/26 

643 

20 

639 

36 

13 

84 

7/1 

29 

5 

Strawbridge  &  Clothier,2/10,  net  30, 

7/9 

7/29 

839 

69 

822 

90 

16 

79 

7/9 

30 

6 

Jno.  C.  Lewi.s,  3/10,  net  60, 

7/10 

8/29 

787 

34 

703 

72 

23 

63 

7/10 

July 

1 

7 

Bacon  &  Co.,  2/5,  net  60, 

7/6 

18/30 

1532 

86 

1.502 

20 

30 

66 

7/6 

2 

R 

Gimbel  Bros.,  2/10,  net  HO, 

7/12 

Is/i 

719 

41 

705 

02 

14 

39 

7/12 

3 

9 

Jno.  A.  Seeds  &  Co.,  net  10  days. 

7/13 

837 

89 

827 

89 

7/13 

1 

10 

Geo.  Kremer  &  Co.,  30  days  net. 

7/31 

1142 

81 

1142 

81 

7/31 

6 

11 

I.saac  Witmer,  2/10,  net  30, 

7/16 

8/5 

451 

20 

443 

18 

9 

03 

7/16 

3 

12 

Andrew  Jleunier,  3/10,  net  00, 

7/13 

9/1 

387 

91 

376 

30 

11 

64 

7/13 

7 

13 

Thos.  Hatfield  &  Co.,  2/5,  net  30, 

7/12 

8/6  1 

1320 

26 

1301 

73 

24 

53 

7/13 

1 

14 

Harold  De weese  &  Son ,  2/10,  net  20, 

7/11 

7/21 

981 

95 

963 

31 

19 

64 

7/11 

2 

15 

S.  L.  Sulzer  &  Bro.,  net  10  days. 

7/13 

1483 

35 

1483 

25 

7/12 

3 

16 

Schwartz  &  Kraft,  3/10,  net  30, 

7/13 

8/2 

1936 

83 

18H8 

29 

38 

54 

7/13 

7 

17 

N.  Knox  &  Sons,  10  days  net. 

7/17 

1424 

30 

1424 

30 

7/17 

8 

18 

Wright  &  Luckey,  2/10,  net  00, 

7/18 

9/6 

839 

17 

813 

59 

16 

58 
32 

7/18 

18878 

46 

315 

Purchase  Ledger  Account  Cr., 

1 

19193 

78 

315 

32 

19193 

78 

i 

i 
1 

122 


OFFICE    ROUTINE    AND    BOOKKEEriNG. 


TiliU'  Index.  Of  the  mimcrons  forms  of  books  and  other  devices  that  have  beeu 
designed  to  keiji  track  of  the  discount  time  limit  and  due  date  of  bills  purchased  (or  sold) 
none  is  as  simple  and  effective  as  a  Time  Index.  An  ordinary  diary,  or  a  draw  cabinet 
card  index  containing  a  card  for  each  day  on  which  the  discount  time  limit  and  due  date 
may  fall  will  serve  the  purpose  of  a  time  index.  When  a  bill  is  entered  in  the  Abstract 
Purchase  Book  or  Abstract  Purchase  Ledger,  the  serial  number  of  such  bill  is  entered  in  the 
index  on  the  day  the  discount  time  limit  expires  and  also  on  tlic  due  date.  The  first  entry  in 
the  Ab.'Jtract  Purchase  Ledger,  illustrated  on  page  121,  would  be  indexed  as  follows:  Under 
date  of  .July  11  write  1.  which  is  the  serial  number,  in  black  ink,  and  under  the  date  of 
July  31  write  1  in  red  ink.  When  an  invoice  is  paid  both  numbers  are  canceled  from  the 
index.  For  the  convenience  of  the  manager  of  finances  it  may  be  well  to  also  enter  the 
amount  of  each  invoice  in  the  index,  in  connection  with  the  serial  number,  so  that  the  total 
amount  due  on  any  i)articular  day  may  be  readily  ascertained  by  him.  Wiien  either  of 
these  dates  arrives  it  will  be  an  easy  matter  to  determine  the  number  and  amount  of  the 
invoices  to  be  discounted,  or  that  are  due.  It  will  greatly  facilitate  matters  when  a  diary  is 
used  if  the  discount  time  limit  is  written  in  black  ink  and  the  due  date  in  red  ink,  so  as  to 
readily  distinguish  one  from  the  other.  When  a  card  index  is  used  cards  of  two  colors  will 
serve  tlio  same  jturpose.     The  card  index  is  the  better  of  the  two.     Do  you  see  why? 

Sales  Tickets.  Sales  Tickets  will  be  dispensed  with  in  this  business.  Historical  data 
will  be  substituted  in  which  the  salesman's  number,  the  number  of  the  sale  and  the  amount 
of  each  sale  are  given.  If  sales  tickets  were  u.sed  they  would  be  similar  in  form  to  those 
illustrated  on  pages  90  and  91. 


(SiMMAlt 

V  Shekt). 

Date,  July 

-'. 

Clerk  No.  1. 

!  Ticket 
No. 

1 

Aiuuuut. 

Tii-ki-i 
No. 

Amount. 



3  loo 

2C 

2 

2 

00 

27 

3 

2 

50 

28 

4 

1 

50 

29 

5 

3 

00 

30 

8 

2 

20 

31 

7 
8 

14 

26 

32 
33 

9 

34 

10 

35 

11 

1 

36 

12 

37 

13 

38 

14 

39 

15 

40 

le 

41 

17 

42 

18 

43 

19 

44 

20 

45 

21 

48 

22 

47 

1     23 

48 

24 

49 

I     25 

50 

Abstract  of  Time  Sales. 

A 

TO  G  Ledger  —  Shoe  Department. 

July  s. 

189     1 

Clerk.s 
No8. 

Ticket 

Nos. 

L.F. 

Accounts  to  be  Charged. 

Amounts.    1 

1 

5 

20 

Mrs.  Heiirv  Baiicr, 

12 

40 

6 

22 

0.  L.  Bebrns. 

8 

20 

12 

11 

Mrs.  Jno.  R.  ('a>M  I 

9 

26 

14 

13 

U.  S.  Collins. 

11 

80 

10 

10 

Ileury  Cutler. 

15 

25 

4 

9 

C.  O.  Dinwidiiie. 

8 

90 

5 

19 

Chas.  Dodson, 

14 

15 

10 

22 

Geo.  Eiieert, 

17 

26 

1 

12 

.Ino.  E.  Erhimit, 

0 

85 

7 

29 

Georse  Flynn. 

-1 

22 

8 

23 

.Inc.  B.  Flower. 

G 

.50 

2 

24 

Jno.  ]it.  Glesison. 

15 

50 

3 

9 

Mrs.  A.  K.  Gilbert. 

11 

40 

:     5 

20 

Clias.  K.  Gib.-jon, 

11 

75 

2 

28 

H.  J.  Glover. 

3 

25 

3 

23 

Dr.  I).  S.  Goble. 

K! 

20 

4 

16 

Miss  B.  Gutniiiii. 

4 

85 

6 

14 

C.  F.  Crainger, 

I 

35 

185 

09 

OFFICE    ROUTINE    AND    BOOKKEEPING.  123 

Clerks'  Suiniiiary  Sheets.  Fifty  sales  tickets,  printed  iti  tlnplicate  and  nnnibered 
consecutively  are  usually  put  up  in  book  form.  For  the  convenience  of  the  sales  clerks  a 
binder  is  used  to  hold  these  tickets,  and  a  Summary  Sheet  is  furnished  (usually  attached  to 
the  inside  of  back  cover  of  binder)  with  each  lot  of  fifty  tickets.  {See  illu><f,ration  of  Sum- 
mary Sheet  on  page  122.)  When  a  sale  is  made  the  clerk  enters  the  total  on  the  Summary 
Sheet  opposite  the  number  that  corresponds  to  the  number  on  the  Sales  Ticket,  before 
detaching  the  latter  to  send  to  the  counting  room  department.  There  are  usually  two  sets 
of  tickets  and  Summary  Sheets  supplied  to  each  clerk,  so  that  one  set  may  be  left  at  the 
counting  room  to  be  compared  with  the  corresponding  sales  tickets  or  entries  for  same,  while 
the  other  is  in  use  by  the  clerk.  The  total  of  all  the  Summary  Sheets  for  a  day  should 
equal  the  total  sales  for  that  day.  The  daily  footings  of  the  Summary  Sheets  are  entered  on 
the  Clerks'  Daily  Sales  form,  the  total  of  which  should  equal  tiie  amount  in  the  Summary 
of  Daily  Sales.  {See  Ulustration  of  Clerks'  Daily  Sales  form  on  vai/e  ISS  (oul  aho  illudrafion 
of  Summary  of  Daily  Sales  form  on  page  12^.) 

Sales  oil  Accoiiut.  In  business  when  sales  on  account  are  made  the  sales  tickets  or 
bills  must  all  pass  through  the  hands  of  the  credit  man,  before  the  goods  are  delivered  to 
the  buyers.  Those  persons  who  have  not  established  a  credit  will  be  obliged  to  establisli 
it  or  the  goods  will  not  be  delivered.  Those  who  have  misused  their  credit  will  be  denied 
the  privilege  of  further  credit,  and  no  goods  will  be  delivered  to  them  unless  paid  for  in 
cash. 

When  tlie  credit  man  lias  approved  tlie  credit  sales  and  the  packing  and  shipping  clerks 
have  disposed  of  the  goods,  the  tickets  or  bills  for  the  same  are  turned  over  to  the  General 
Bookkeeping  Department.  Here  the  general  bookkeeper  and  Jiis  assistants  assort  the  tickets 
according  to  the  merchandise  departments,  and,  also,  according  to  the  sales  ledgers,  if  more 
than  one  sales  ledger  is  used. 

Abstract  of  Time  Sales.  For  the  time  sales  in  each  merchandise  department  an 
Abstract  of  Time  Sales  sheet  for  each  of  the  sales  ledgers  is  required.  On  these  sheets  are 
entered  the  sales  as  shown  in  the  illustration  on  page  122.  This  work  is  usually  done  by 
the  General  Bookkeeping  Dejiartment.  It  may,  however,  be  done  by  tlie  managers  of  the 
various  merchandise  departments. 

Suniinary  of  Daily  Sales.  The  total  of  each  Abstract  of  Time  Sales  sheet  is  cliarged 
to  the  projier  Sales  Ledger  and  credited  to  the  23roper  merchandise  department.  This  is  done 
in  the  General  Bookkeeping  Dejiartment  by  entering  the  totals  on  a  Summary  of  Daily  Sales 
sheet  as  shown  in  the  illustration  on  ]iage  134.  To  ascertain  the  total  daily  sales  of  each  Sales 
Ledger  and  of  the  Cash  Sales  it  will  be  necessary  to  add  the  items  iu  the  department  columns 
horizontally,  and  to  ascertain  the  total  of  each  department  add  them  vertically.  The  footing 
of  the  Total  column  is  the  amount  of  the  total  sales  for  the  day,  and  this  footing  should  prove 
with  the  total  of  the  footings  of  the  department  columns.  The  daily  footings  of  all  the 
columns  are  written  in  red  ink  to  facilitate  the  addition  of  them.  The  monthly  footings 
are  posted  to  accounts  in  the  General  Ledger,  bearing  the  same  titles  as  the  department 
columns  of  the  Summary  of  Daily  Sales,  while  the  Sales  Ledger  totals  in  the  Total  column 
are  posted  daily.  If  thought  expedient  a  form  similar  to  Department  Charges  foi-m,  illus- 
trated on  page  121,  could  be  employed  to  receive  the  charges  to  Sales  Ledgers,  and  the  foot- 
ings of  the  columns  posted  once  a  month.  The  aggregate  yearly  sales  are  ascertained  by 
consulting  the  accounts  witli  the  departments  as  kept  in  the  General  Ledger. 


124 


OFl-lCE    KUUTIXE    AND    HOUKKEEPING. 

SuMMAity  01'  Daily  Sales  —  Month  of  July,  189 


Date,  JuIii  -• 


A  to  G.  Ledger  Snles. 
H  to  M,       •• 
Mcln]{,     •• 
SloZ. 

Total  credit  sales. 
Cash  Sales, 

Total  for  day. 


Date,  July  ". 


A  to  G.  Ledcer  Sales, 
H  to  M.       •• 
MctoU,     •■ 
SloZ, 

Total  creilit  sales. 
Cash  Sales, 

Total  for  (lav. 


Shoes.    |     Gl,oves.  {      Hats. 


DllESS 

Goods. 


ClOTBING.  :      TOTAl,.     I.UF 


112 

50 

87 

18 

113    84 

,     156 

801 

214 

60 

1 

684  !  92 

97 

22 

.     104 

29 

1     129 

30 

1     172 

40 

184 

27 

687 

AH 

141 

50 

116 

84 

96 

54 

192 

60 

193 

26 

740 

74 

lis 

409 

29 
51 

92 

89 
20 

133 

80 

200 

36 

206 

85 
98 

752 

19 

401 

473 

48 

,     722 

16 

798 

28«5 

33 

358 

30 

431 

48 

512 

90 

38 

872 

40 

56 

920 

72 
70 

3095 

80 

S27 

81 

S33 

68 

986 

ISH 

1719 

6961 

IS 

1 

Shoes. 


Gloves. 


Hats. 


Dress 
Goods. 


Clotbinq.I      Total 


124    80 
98 

132     09 
S9     98 
19 
12 
31 


44 1> 
432 


878 


82 
116 

90 
120 


415 
414 


830 


89     26 


112 
136 
117 


456 
536 


993 


195  '42 


193 
140 
100 


6f<9 

S.5() 


1539 


160  50 
267  30 
3':4  I  80 
190     20 


948  180 

869    35 

1918    15 


8 

9 

10 

11 


1                          1                        !■ 
Date,  July  i.                              SHOES.      [   Guovts.         Hats.     1 

gS.    I.CLOTHiNO.j     Total.    | 

A  III  ti.  Ledger  Sales. 
MtoM. 
.Mc  to  U,     •• 
SloZ. 

79 

118 

88 

142 

43S 
362 

20 
29 
89 
61 
99 
.59 

91     95 
99     26 
100    24 
111   i  18 
40«"  63 
433    57 

124 

116 

97 

138 

20 ' 
69 
72 
28 

144 
167 
155 

185 

20 
65 
95 
95 

1 
222 
170 
190 
209 

83 
40 
60 
26 

09 

81 

90 

662 

678 

639 

787 

276? 

3223 

5991 

38 
29 
40 
28 
35 
83 
IS 

8 

9 

10 

11 

Total  credit  sales. 
Cash  Sales. 

470 
514 

»9 
66 

653 
960 

75 
20 
95 

7y9 
952 

Total  for  day. 

791  '58 

1 

84:.' 

SO 

991 

55 

1  1613 

1751 

Date.  Ji<(|/  6.                          1     Shoes.     I   Gloves.    '     Hats.     1     go'ods.       Clothing. 

Total. 

A  to  G.  Ledger  Sales, 
UtoM.        • 
Mc  to  H.      •• 
StoZ, 

88 

92 

114 

99 

92 
88 
21 
89 

90 
84 

76 

99 

101 

119 

46 
25 
13 
96 

120 

130 

90 

113 

50 
75 
60 
33 
18 
84 

182 

384 

167 

•   97 

40 

20 
22 
60 

172  ■221 
19(!     .50 1 
213     80  1 
169    50] 

640    49 

903     58 
686     96 

600  1  28 

8 

9 

10 

11 

Total  credit  sales. 
Cash  Sales, 

39."> 
420 

396 
'     434 

79 

58 
37 

4.55 
525 

831 
784 

42 
20 

6S 

752 
966 

02 
67 

2831 
3132 

31 
18 

'4i 

Total  for  day. 

S16 

74 

831 

981 

1615 

1718 

69 

591:3 

652 

J 

788 

48 

831 

53 

684 

40 
06 

2957 

32l»2 

93 

,  6159 

99 

9 
10 
11 


Date,  Jtilii  s.                           1 

Shoes. 

GixjvES.          Hats.      :    q*,"^      j  Cloth i.vo.r    Total. 

A  to  G,  I..edi;er  Sales, 
II  to  M,       •• 
Mc  to  K,     " 
StoZ, 

124 
88 

122 
89 

89 
72 
69 
2(1 
50 
72 
0^' 

89 
100 

99 
104 

29 
19 
95 
23 

118 

98 

124 

110 

S3 
38 
24 
10 

170 
180 
192 
112 

20 
24 
40 
82 
66 
93 
58 

308 
361 
1.50 
124 

29 
20 
40 
92 

1 

;   811 

837 

6x9 

541 

2.880 

3184 

6064 

50 

73; 

681 

27' 

18 

56 

74. 

1 

8 

9 

10 

11 

Total  credit  sales, 
Cash  Sales, 

425 
421 

402 
425 

Oti 
74 
40 

451 
520 

55 

08 

655 
824 

I48O 

94*4 

991 

81 

50 
31 

Total  for  day. 

847 

«i'A' 

97S 

SS 

1936 

Total  for  month, 

L.  F. 

4161 
13 

60 

t 

]  4164 
1       ^'^ 

1 

1 
87 

4924 
15 

53 

7844 

10 

\ 
67     9044    75 

'       17 

1 

30140 

48 

OFFICE    ROUTINE    AND    BOOKKEKPING. 


125 


Clerks'  Daily  Sales.  The  liook  or  sheets  on  whicli  the  clerks'  daily  sales  are  entered 
from  the  Snnunary  Sheets,  are  ruled  with  vertical  money  eolumns,  siiilieient  in  number  to 
accommodate  tlie  sales  for  each  d.iy  of  an  entire  month.  In  the  illustration  on  Jiage  125 
but  five  columns  for  five  days' sales  and  a  Total  column  are  ruh'd.  The  footings  of  each 
dcjiartment  should  equal  the  footings  of  each  department  column  on  the  Summary  of 
Daily  Sales  sheet,  while  the  monthly  totals  siiould  equal  the  monthly  totals  of  the  Summary 
of  Daily  Sales.  If  errors  exist,  a  comparison  of  the  Clerks'  Summary  Sheets  witii  the  Sales 
Tickets  and  entries  for  same  will  be  necessary.  The  department  footings  are  written  in 
red  ink  to  facilitate  the  addition  of  tiiem.  Besides  being  a  proof  of  the  entries  in  the  Sum- 
mary or  Daily  Sales,  the  Clerks'  Daily  Sales  record  serves  anotlier  important  pur})ose.  It 
enables  the  proprietors  to  ascertain  the  total  daily,  weekly,  monthly  or  yearly  sales  of  each 
and  every  clerk,  tiiereby  determining  the  value  of  the  services  of  eacii  clerk  to  the  business 
and  regulating  his  or  her  wages  in  proportion  to  the  sales  made. 

Each  clerk  is  given  a  number  by  which  he  is  thereafter  known,  and  the  clerks  for  each 
dejnirtment  are  supplied  with  numbers  in  consecutive  order  so  that  the  sales  from  any 
department  are  clearly  designated  by  the  clerk  numbers.  In  this  business  the  clerk  num- 
bers for  the  Shoe  Department  range  from  1  to  25;  those  for  the  Glove  Department  from  25 
to  50;  those  for  the  Hat  Department  from  50  to  75;  those  for  the  Dress  Goods  Department 
from  75  to  100  iind  those  for  the  Clothing  Department  from  100  to  125.  In  entering  the 
numbers  and  names  sufficient  lines  are  left  vacant  for  each  department  so  that  the  names  of 
extra  clerks,  employed  temporarily  during  the  busy  season  in  any  department,  may  be  added 
in  consecutive  order  at  any  time.     {Sec  iUv:<traiiun  of  Clerks'  Daily  Sales  record  heluw.) 


Clerks'  Daily  Sales  —  Month  of  Jithi,  189 


Clerk 
No. 

NA.MKS  of  ('I.KRK.S. 

3 

G 

7 

8 

Total  for 
Month. 

1 

Clarence  Small. 

14 

26 

9 

27 

3 

36 

7 

30 

4 

33 

38 

41 

a 

William  Moore, 

142 

84 

139 

67 

149 

28 

163 

15 

155 

55 

750 

49 

3 

Miss  Jennie  Mission, 

98 

40 

101 

16 

96 

50 

107 

25 

119 

22 

533 

53 

4 

Miss  Mary  Murphy, 

88 

40 

67 

20 

74 

80 

92 

40 

72 

61 

395 

41 

5 

.lohn  Newlands, 

91 

20 

75 

60 

69 

75 

88 

50 

77 

79 

402 

84 

6 

Jas.  O'Neill, 

73 

50 

73 

81 

78 

23 

69 

84 

66 

64 

361 

01 

7 

Miss  Maud  Young, 

67 

30 

65 

30 

67 

22 

65 

49 

65 

25 

330 

46 

8 

Elmer  Winter, 

79 

20 

78 

79 

77 

82 

79 

92 

81 

81 

397 

54 

9 

Mrs.  Kate  Franklin, 

65 

26 

71 

30 

72 

50 

71 

16 

70 

70 

350 

82 

10 

Miss  Mamie  Robinson, 

43 

80 

43 

36 

49 

32 

50 

15 

51 

51 

237 

04 

11 

David  Wliite, 

43 

27 

39 

82 

48 

75 

54 

60 

59 

59 

246 

03 

12 

Jas.  Ahl, 

82 

48 

26 

50 

29 

22 

•»s 

(15 

23 

Si7 

33 

22 

139 

08 

8S7 

SI 

791 

58 

SIG 

U 

s:s 

.,7 

JilOl 

G6 

25 

Miss  Bertha  Steele, 

9 

80 

17 

80 

5 

60 

0 

30 

3 

84 

39 

84 

26 

Miss  Lottie  Mason, 

122    1)0 

124 

80 

117 

39 

13S 

25 

136 

98 

616 

93 

37 

Henry  Oliplmnt, 

12!)    11") 

126 

30 

130 

31 

118 

45 

119 

19 

624 

30 

28 

Clias.  Hicks, 

107    80 

111 

24 

106 

33 

117 

80 

104 

40 

547 

46 

29 

Miss  Lucy  Wade, 

97    20 

92 

40 

93 

60 

72 

80 

92 

39 

448 

29 

30 

Miss  May  Greenfield, 

78 

40 

79 

80 

81 

30 

92 

60 

89 

89 

431 

99 

31 

C.  C.  Cunningham, 

88 

26 

87 

33 

89 

47 

88 

89 

88 

31 

443 

16 

33 

John  Dwyer, 

75 

27 

77 

82 

78 

79 

79 

87 

78 

23 

389 

97 

33 

Joseph  Mosby, 

69 

20 

68 

42 

71 

50 

72 

06 

69 

50 

351 

28 

34 

Edward  Schriefer, 

54 

30 

56 

29 

57 

29 

59 

60 

55 

88 

283 

36 

833 

G8 

S4S 

20 

831 

37 

830 

22 

828 

iO 

Am 

87 

120 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


Sales  Ledgers.  AVhcn  tlic  bookkeepers  in  the  General  Bookkeeping  Department  have 
charged  the  dilToreiit  Sales  Ledgers  and  credited  the  various  departments  witii  the  amounts 
of  sales  they  enter  the  daily  totals  of  the  Clerks'  Summary  Sheets  on  the  Clerks'  Daily 
Sales  record  and  comjiare  the  footings  with  the  footings  of  tlie  Summary  of  Daily  Sales 
sheet.  When  found  to  agree,  the  Abstract  of  Time  Sales  sheets  and  the  accompanying 
Sales  Tickets  are  handed  to  the  bookkeepers  in  charge  of  tiie  Tinie  Sales  Department. 
These  bookkeepers  will  enter  and  file  the  tickets  for  reference.  In  some  business  houses  the 
entries  in  the  Sales  Ledgers  are  itemized  as  they  appear  on  the  Sales  Tickets,  in  others  only 
the  footings  of  the  Sales  Tickets  are  posted.  The  method  of  filing  the  Sales  Tickets,  etc., 
varies,  and  the  ajiplianees  in  use  are  numerous  and  of  various  patterns.  Generally  the 
Sales  Tickets  and  the  Abstract  of  Time  Sales  sheets  for  each  day  are  filed  together  in  con- 
secutive order.     The  ledgers  used  in  this  dejiartment  ai>e  \isually  of  the  ordinary  form  of 


Abstk.^ct  of  Cash  Salks.  Juhi 


189 


Snoh;s. 

Gloves. 

HAT.S. 

DUKS.S  (;OODS. 

1     C'LOTHIMi. 

It  . 

t; 

j:  . 

J£    . 

^  . 

s 

1 

J<  . 

is  . 

6^ 

^  z 

.Vinouut. 

^  c 

.\moum. 

1^ 

Aiuouut. 

Amount. 

i-  c 

5^ 

^a  c 

AllKHMlt. 

5 

4 

14  ,80 

33 

12 

12 

40 

53 

6'  14 

70 

85   5 

19 

80 

io- 

3 

20 

40 

1 

8 

12 

85 

34 

3 

18 

25 

54 

i 

10 

35 

86 

10 

24 

10 

ns 

4 

13 

84 

10 

3 

28 

40 

27 

10 

10 

17 

56 

0 

6 

40 

77 

1 

12 

87 

107 

4 

25 

30 

11 

14 

3 

50 

35 

1 

4 

75 

50 

9 

12 

80 

80 

10 

34 

50 

103 

4 

46 

50 

2 

6 

12 

25 

28 

3 

8 

40 

53 

5 

16 

75 

79 

6 

17 

85 

106 

5 

19 

70 

12 

2 

11 

10 

25 

13 

19 

80 

51 

2 

12 

40 

81 

1 

10 

00 

103 

5 

15 

00 

11 

5 

10 

25 

35 

5 

7 

81 

53 

11 

11 

10 

82 

3 

45 

15 

118 

6 

31 

10 

3 

17 

12 

15 

33 

2 

11 

10 

57 

5 

19 

80 

85 

3 

31 

10 

119 

6 

9 

30 

9 

10 

24 

20 

34 

11 

12 

50 

54 

8 

14 

75 

82 

4 

18 

76 

101 

4 

15 

75 

13 

1 

15 

25 

32 

4 

15 

80 

51 

1 

9 

80 

80 

8 

19 

80 

100 

8 

38 

60 

12 

9 

14 

70 

28 

4 

19 

20 

53 

13 

4 

67 

85 

■1 

1  I 

85 

118 

i 

G3 

00 

13 

2 

4 

70 

31 

6 

6 

75 

60 

6 

8 

14 

81 

*J 

11 

90 

101 

8 

14 

75 

15 

13 

0 

25 

30 

5 

12 

81 

54 

14 

7 

85 

86 

l\ 

42 

40 

116 

( 

18 

41 

14 

6 

8 

70 

27 

G 

10 

70 

51 

13 

12 

30 

75 

5 

19 

95 

103 

8 

17 

34 

9 

11 

4 

25 

30 

6 

20 

15 

60 

4 

15 

20 

86 

11 

38 

40 

101 

5 

Gl 

15 

4 

5 

8 

10 

31 

7 

14 

85 

60 

11 

18 

45 

75 

6 

29 

80 

107 

8 

13 

71 

2 

4 

10 

35 

27 

7 

12 

00 

53 

I 

11 

15 

81 

4 

24 

76 

108 

8 

48 

90 

6 

i> 

5 

00 

35 

10 

10 

50 

59 

6 

19 

35 

82 

11 

48 

75 

117 

4 

34 

30 

r-, 

3 

12 

80 

35 

11 

4 

75 

57 

12 

12 

63 

84 

2 

20 

48 

111 

8 

31 

80 

1 

11 

4 

50 

29 

13 

18 

40 

50 

1 

10 

40 

80 

5 

35 

25 

113 

3 

43 

70 

12 

4 

3 

50 

26 

14 

8 

35 

57 

8 

17 

75 

78 

12 

48 

15 

117 

7 

38 

30 

10 

0 

4 

75 

25 

3 

7 

63 

55 

13 

8 

10 

7G 

8 

44 

75 

103 

1 

54 

115 

2 

15 

8 

75 

29 

1 

4 

25 

57 

7 

19 

80 

80 

4 

10 

48 

110 

5 

2(1 

■J,"i 

10 

9 

12 

80 

31 

10 

12 

45 

58 

15 

10 

50 

79 

11 

13 

35 

112 

6 

14 

^0 

13 

10 

11 

70 

28 

17 

8 

10 

56 

10 

14 

80 

70 

!) 

31 

61 

103 

3 

37 

60 

9 

9 

18 

GO 

34 

2 

17 

85 

55 

9 

25 

75 

81 

9 

10 

85 

109 

3 

10 

15 

15 

5 

13 

80 

26 

3 

10 

50 

50 

2 

10 

48 

79 

8 

48 

75 

102 

4 

41 

74 

12 

12 

7 

50 

32 

5 

19 

70 

00 

2 

18 

40 

76 

10 

15 

80 

108 

3 

16 

5fr 

7 

10 

IG 

00 

33 

5 

16 

40 

59 

8 

7 

75 

84 

5 

10 

80 

112 

9 

61 

80 

11 

15 

3 

75 

29 

11 

13 

35 

57 

14 

20 

15 

81 

10 

35 

50 

115 

3 

12 

90 

5 

1 

4 

85 

28 

5 

15 

10 

60 

3 

13 

71 

82 

6 

30 

71 

118 

8 

7 

80 

3 

12 

1.5 

25 

30 

17 

13 

30 

59 

9 

19 

85 

81 

5 

10 

30 

111 

5 

14 

71 

14 

y 

7 

CO 

20  1  9 

10 

45 

57 

11 

14 

60 

83 

11 

12 

40 

109 

8 

10 

00 

3 

5 

5 

29 

35   2 

20 

60 

54 

10 

10 

87 

86 

12 

18 

75 

100 

1 

9 

75 



— 

25 

12 

3 

30 

50 

3 

21 

35 

81 

6 

25 

30 

111 

7 

10 

02 

358 

30 

431 

48 

52 
51 

7 
11 

14 
17 

35 
(10 

75 

3 

14 

43 

920 

872 

40 

513 

90 

72 

OFFICE    ROUTINE    AND    liOOKKEEPIXG. 


127 


ledger.  Abstracts  of  any  of  the  ledgers  should  |)rove  with  the  aeeounts  bearing  tlie  same 
names,  as  kept  in  the  General  Ledger.  As  stated  before,  tiiese  ledgers  may  be  jiroven  with 
their  accounts  in  the  General  Ledger,  daily,  weekly  or  montldy. 

Cash  Sales.  For  each  cash  sale  the  cashier  receives  the  ref)uired  amount  of  casli  and 
the  original  sales  ticket,  which  is  kei)t  on  file  until  the  close  of  the  day  or  some  other  con- 
venient time,  when  all  the  tickets  are  assorted  according  to  departments,  and  are  entered  on 
an  Abstract  of  Cash  Sales  sheet.  {See  ilhtstration  on  p<t(jc  1'26.)  These  sheets  are  ruled  so 
that  each  department  receives  credit  for  the  sales  made  from  it.  Three  columns  are  ruled 
for  each  department,  one  to  receive  the  clerk  number,  one  to  receive  the  ticket  number 
and  a  third  to  receive  the  amount  of  the  sale.  The  total  of  the  footings  of  the  money  col- 
umns for  the  various  departments  should  equal  the  amount  of  the  cash  received  by  tlie 
cashier.  The  total  of  each  department  money  column  is  entered  in  the  Summary  of  Daily 
Sales  as  shown  in  the  illustration  on  page  124.  The  Abstract  of  Cash  Sales  sheet  or  sheets 
are  handed  to  the  General  Bookkeeping  Department  with  the  Cashier's  Abstract  Statement. 

Cashier's  Abstract  Statement.  Tlie  cashier's  statement  in  this  business  is  an 
abstract  of  other  detailed  statements.  {See  illustration  below.)  Detailed  statements  for  eacli 
of  the  ledgers  named  on  the  Abstract  Statement,  and  the  Abstract  of  Cash  Sales  sheet 
together  with  the  Sales  Tickets  are  sent  to  the  General  Bookkeeping  Department  with  the 
Abstract  Statement.  After  the  General  Bookkeeper  has  proven  the  Aiistract  Statement 
with  the  various  detailed  statements  he  records  the  entries  on  the  Abstract  Statement  in 
the  Abstract  Cash  Accottnt  as  illustrated  on  pages  128  and  139,  and  hands  the  detailed  state- 
ments to  the  bookkeeping  departments  to  which  they  belong. 

Detailed  Statements.  The  detailed  statements  are  similar  to  the  Abstract  of  Time 
Sales  sheets,  as  may  be  seen  by  referring  to  the  illustration  of  Cash  Keceipts  —  A  to  G 
Ledger  on  page  127.  When  the  items  on  these  statements  have  been  entered  in  the  ledgers 
by  the  bookkeepers  to  whom  they  have  been  handed,  they  are  filed  away  in  consecutive  order. 


Cashier's  Abstract  Statement. 

July  2,                                  189 

Receipts. 

On  hand. 
General  Ledger, 
Cash  sales, 
A  to  G  Ledger, 
H  to  M      " 
Mc  to  R    " 
StoZ 

Payments. 

General  Ledger, 
Purchase 

Balance, 

1     Disct. 

67246 

3095 
429 
313 

289 
150 

50 

80 
98 
94 
20 
25 

71525 

2815 

67 
12 

37 

45 

942 

1872 

50 
62 

68710 

55 

Cash  Eeceipts  —  A  to  G 

Ledger. 

Jidy  S, 

189 

L.F. 

Mrs.  Henry  Bader, 

Miss  Alice  Benedict, 

12 
13 

40 
95 

C.  L.  Behrns, 

18 

60 

Mrs.  Jno.  R.  Cassel, 

4 

29 

R.  S.  Collins, 

12 

22 

Henry  Conihs, 

60 

54 

C.  O.  Dinwiddle, 

22 

fiO 

Chas.  Danenhower, 

G2 

40 

George  Engert, 
Jno.  E.  Emraett, 

19 

70 

20 
60 

George  Flynn, 
Jno.  R.  Gleason, 

7 
22 

65 
40 

Mrs.  A.  K.  Gilbert, 

32 

80 

l\.  J.  Glover, 

17 

75 

Chas.  K.  Gibson. 

8 

75 

Dr.  D.  S.  Goble. 

3 

20 

Miss  Bertha  Gulman, 

9 

26 

L.  K.  Grainger, 
C.  F.  Gary,'^ 

12 
18 

92 

45 

429 

98 

128 


Receipts. 


(IK  Ml  i:     KOITlNt;    AND    bUOKKKEl'ING. 

Abstract 


Datk. 

llAI^tN'CK. 

Genkkal 
Leuoek. 

Cash  Sales. 

A  T<1  G  Ledgeu. 

H  TO  M  Ledger. 

MC  TO  U 
Ledqkr. 

18»-. 

July 

1 
3 
3 
0 

67246 
68710 
71266 

50 
55 
08 

67246 

50 

3095 
3223 
3132 

80 
83 
13 

76 

429 

780 

1007 

98 

no 

20 
68 

313 
620 
920 

94 
30 
40 

64 

289 
930 
326 

20 
20 
30 

L.  P. 

7 

207223 

73 
61 

67246 

50 

9451 

2217 
8 

1854 
9 

1545 
10 

70 

40335 

1 

Altstract  Cash  Afcount.  As  .slated  before,  this  account  is  kept  in  the  lieneral  Booiv- 
keei)ing  neparttneiit,  and  the  entries  therein  are  made  from  the  Casliier's  Abstract  Statement. 
Tlie  numbers  in  the  iUustration  on  jiages  128  and  129  written  in  italics  are  the  folio  num- 
bers tliat  indicate  to  which  jiage  of  the  General  Ledger  the  footings  of  the  columns  have 
been  posted.  It  is  not  necessary  to  post  the  footings  of  tliose  columns  that  have  no  folio 
numbers.  Wlien  taking  a  trial  balance  the  balance  of  cash  as  exhibited  by  this  account  is 
lo  be  included. 

Pay.  Hull.  Tlic  form  of  I'ay  Roll  illustrated  below  is  one  in  common  use  where 
the  custom  of  paying  off  weekly  is  in  vogue.  In  the  illustration  the  clerks'  names  for  but 
two  departments  are  illustrated.  Tlic  amount  j)aid  out  for  each  department  is  charged  to 
its  account  in  the  General  Ledger.  The  footings  of  each  department  are  written  in  red 
ink  to  facilitate  the  finding  of  i!ie  total  amount  paid  out  for  wages.  Study  tlie  form  care- 
fully. 

r.w   Uoi.L— Wkkk   Kkdixg  June  SO,   189 


u 

1 

Names  ok  E.mpi-oyees. 

c 
o 

!5 

3 

IS 

1 

7 

J 

^ 

1.1 

6 

s 

Amount. 

Remarks  and  Signatures. 

f'lnroiice  Siniill, 

2r).oo 

2:) 

00 

manager. 

2 

William  Moore, 

1 

5+ 

18.00 

16 

50 

sick. 

O 

iMi>.s  .leniue  Mission, 

6 

1(1.00 

10 

00 

4 

Miss  Mary  Murpliv, 

6 

8.110 

8 

00 

5 

John  Newlaiuls, 

5i 

12.00 

11 

00 

attended  a  funeral. 

(> 

James  O'Neill, 

11 

+ 

5i 

10.00 

9 

16 

7 

.^[iss  Maud  Yoiiiif:, 

1 

1  + 

1 

6f 

9.00 

9 

38 

worked  overtime. 

8 

Elmer  Winter, 

1 

6 

12.00 

12 

00 

9  '  .Mrs.  Kiilf  Franklin. 

1 

1 

6 

10.00 

10 

00 

10 

Miss  Mamie  l{ol)inson, 

1 

1  . 1 

5 

7.00 

5 

83 

began  Tuesday. 

11 

David  While, 

I 

4 

8.00 

.") 

33 

Wednesday. 

12 

Jas.  Ahl, 

1 

3 

6.00 

3 

1S5 

00 

20 

"      Thursday. 

sr) 

Miss  Hcrlha  Steele, 

1 

6 

25.00 

25 

00 

21) 

Miss  Louie  Mason, 

4 

5+1 

I.IUO 

13 

75 

delaved  by  railroad  wreck. 

27 

Henry  Olipliant, 

6    I 

15.00 

\ri 

00 

28 

Clias.  Hicks, 

u 

6*! 

12.00 

13 

00 

worked  overtime. 

29 

Miss  Lucy  Wade, 

1  J 

6 

10.  (JO 

10 

00 

30 

Miss  May  Greenfield, 

6 

SJIII 

s 

110 

31 

V.  C.  (.'unningham. 

1 

.) 

10.1111 

"- 

:(:i 

I'liian  Tuesday. 

32 

John  Dwyer 

h 

\ 

^*i 

b.dO 

G 

00 

Tuesday. 

33 

Joseph  Mosliv, 

4    1 

8.00 

,') 

;i:i 

Weducsdav. 

34 

Edward  Schriefer, 

8 

6.00 

3 
107 

00 

"      Thursday. 

OFFICE    ROUTINE    AND     liOOK  KEEPING. 

Cash  Account. 


129 


1 

Payments. 

S  TO  Z 

Ledger. 

Total. 

Geneh.\l 
Ledgek. 

Discount. 

Purchase 

tjEDGER. 

Hala.nce. 

Total. 

1.50 
426 

829 

25 
30 
40 

67246 

71.525 
74691 

77482 

50 
67 
68 
11 

96 

942 

1143 

29720 

50 
50 

50 

o7 

u 

S2 

1872 
2382 
1426 

.55S1 
13 

62 
50 

on 

13 

67246 
68710 
71266 
46335 

50 
55 
68 
61 

67246 

71525 
71(i91 
77482 

50 
67 

68 
11 

1405 
11 

95 

290945 

31805 

50 

110 
5 

SJ 

2535.59 

34 

290945 

96 

How  to  Pay  Oil".  Sonu'  business  lioiises  pay  oil  by  clieck,  giving  to  each  employee  a 
checiv  payable  to  his  order  for  tlie  amount  due  him.  As  the  check  must  be  endorsed  by  the 
employee  before  lie  can  get  the  money  on  it,  it  becomes  a  reeeijjt.  Other  concerns  pay  off 
in  currency,  usually  by  what  is  known  as  the  envelope  system. 

When  currency  is  used  the  bookkeeper  or  cashier  usually  gets  from  the  bank  the  exact 
amount  of  money,  and  just  the  kind  of  denominations  and  change  wanted.  To  accomplish 
this  he  scans  his  jiay  roll  name  by  name  and  records  each  result  as  follows:  Suppose  he  has 
the  following  records:  M.  E.  Smith,  $08.8(1,  and  Frank  Kerr,  175.75.  He  rules  columns 
on  a  tablet  for  20's,  lO's,  o's,  3's,  and  Vs  for  dollars,  and  for  fractional  currency,  50^-,  25^, 
109^,  5v- and  1^-.  Commencing  with  Smith,  he  enters  in  his  list,  3  in  the  column  headed 
twenty,  1  in  the  five  column,  1  in_  the  two  column  and  1  in  tlie  one  column.  3  x  20-t-5-(- 
2  -|-  1  ecpials  (38  or  8(18.  Fractional:  1  in  50/'  column,  1  in  25'/  column,  1  in  10'/  column,  1  in 
\<j:  column.  50'/  +  25^'  +  10'/  +  \(f:  equal  8G/.  For  Kerr— 3  twenties.  1  ten,  1  five  and  50^' 
and  25;^  equals  $75.75.  Instead  of  3  twenties,  1  fifty  and  1  ten  could  be  used;  in  fact  use 
the  largest  denominations,  then  add  each  kind.  When  the  amount  required  is  ascertained, 
a  check  is  drawn  for  that  sum,  payable,  usually,  to  "Pay  Roll"  and  taken  to  the  bank, 
together  with  the  memorandum  of  the  change  wanted,  and  caslied.  This  cash  should  be 
kept  separate  from  the  other  cash  on  hand,  especially  where  the  envelope  system  is  used,  so 
that  if  any  mistakes  are  made  in  filling  the  envelopes  they  may  l)e  detected  before  paying 
oflf.     (See  form  of  Pay  Koll  memorandum  on  page  130.) 

Instead  of  finding  the  number  of  each  denomination  by  the  above  method  the  adept 
bookkeeper  scans  each  amount  in  the  entire  pay  roll,  first,  to  ascertain  how  many  pennies 
are  required  to  make  the  exact  change  for  the  entire  pay  roll.  He  then  ascertains  in  the 
same  manner  the  numberand  amountof  nickels,  dimes,  quarters,  halves,  l"s,  2"s,  5's,  lO's,  20's, 
etc.,  that  are  required.  These  are  usually  entered  on  a  Pay  Roll  memorandum  as  illustrated 
on  i)age  130,  or  in  the  aijsence  of  a  memorandum  sheet,  on  the  back  of  the  check.  The 
total  of  the  memorandum  should  e(pial  the  footing  of  the  jjay  roll.  The  objection  urged 
against  the  first  method  explained,  is  that  in  a  pay  roll  of  several  hundred  names  it  would 
require  hours  to  accomplish  what  can  be  done  by  the  latter  method  in  a  few  minutes.  It 
may  require  considerable  practice  for  some  to  master  this  latter  method,  but  its  time  and 
labor  saving  features  will  be  appreciated  by  all  b()()kkee])ers  who  have  hail  experience  with 
long  pay  rolls,  and  who  know  how  precious  time  often  is  on  pay  days. 

When  the  envelope  system  is  used,  the  envelopes  are  prepared  for  tilling  after  the  pay 
roll  has  been  made  out  for  the  week  or  month.      This  is  done  Ity  cojiying  on   the  envelopes 


130 


OKKICE    ROUTINE    AMj     Ikmik  k  i.  I.IING. 


from  tlie  pay  roll  the  names,  or  the  pay  roll  numbers,  of  the  employees,  togctiier  with  the 
amounts  due  them.  The  amounts  are  usually  written  in  a  position  where  they  will  be  cov- 
ered over  when  the  envelopes  are  sealed.  Some  bookkeepers  write  the  amount  on  the  inside 
of  the  flajt;  others  on  the  back  (near  the  lower  edge),  covering  it  over  by  folding  the  envelope 
lengthwise  before  sealing  it.  When  the  amount  is  written  on  the  inside  of  the  flap  it  will 
be  a  convenience  to  write  the  name  of  the  employee  on  the  reverse  side  of  the  envelope,  so 
that  both  the  name  and  amount  apjiear  on  the  same  side  of  the  envelope.  What  reason  can 
you  assign  for  covering  up  the  amount  of  an  employee's  wages? 

The  envelopes  are  filled  by  placing  in  each  one  the  amount  written  upon  it,  the  person 
filling  the  same  being  careful  to  select  the  largest  possible  denominations  each  time  in 
making  up  the  amount,  so  as  not  to  run  short  of  change.  When  the  last  envelope  is 
reached,  the  amount  of  cash  remaining  should  tally  exactly  with  the  amount  called  for  on 
the  envelope.  If  it  does  not  so  tally,  then  a  mistake  has  been  made  in  filling  the  envelopes. 
To  locate  the  mistake  it  will  be  necessary  to  recount  the  cash  in  the  envelopes.  The  envel- 
opes are  usually  not  sealed  until  all  have  been  filled  and  the  cash  proven  as  explained  above. 
For  the  convenience  of  the  one  who  pays  off,  the  envelopes  are  arranged  in  the  cash  box  or 
on  the  desk  so  that  the  numbers  appear  consecutively,  when  the  envelopes  are  numbered,  or 
80  that  the  luimes  appear  alphabetically,  when  names  are  used.  The  paying  off  is  usually 
done  by  the  cashier,  bookkeej)er,  foreman,  paymasler,  or  some  one  familiar  with  the  names 
or  numbers  of  the  employees. 


i 


Alliance  Baxk, 

(Your  plucc  here.) 

PAY-KOLL    MEMORANDUM. 

J.  A.  Luman  &  Co. 

require  as  follows: 

1 

14 

Pennies,                       1 1 1 

Nickels,                        20 

1 

25 

Dimes,                           21 

2 

10 

Quarters,                        25 

6 

25 

Halves,                            40 

20 

00 

Silver  Dollars,              67 

67 

00 

2',s,                                   30 

60 

00 

5's,                                 IG 

80 

00 

lO's,                               23 

230 

00 

20's,                                 6 
Total 

120 

00 

587 

74 

■      ~ 

Abstkact  01'  Goods  Retckned, 

Shoe  Department — A  to  G  Ledger. 

July  C, 

1-^0     ' 

L.  K. 

ACCOUNTS  TO  BE  CREDITEU. 

Amounts. 

Jno.  Atwood, 

12  !  84 

Geo.  P.  Bower, 

9 

20 

Edna  V.  Bowman, 

20 

40 

F.  J.  Brown, 

18 

96 

A.  B.  Carr, 

12 

80 

Mrs.  G.  Culver, 

6 

20 

Henry  Eames, 

13 

45 

Frank  Fellis, 

22 

80 

(ieo.  Gregorj', 

3 

80 

Martin  Granger, 

14 

62 

141      07 

Goods  Returiipd.  When  goods  are  returned  the  records  to  be  made  are  precisely  the 
reverse  of  those  made  at  the  time  of  sale.  In  the  case  of  a  cash  sale,  if  the  cash  is  refunded, 
cash  account  is  credited  and  the  department  from  which  the  goods  were  sold  is  charged,  as 
it  has  purchased  back  the  goods.  When  the  goods  have  been  sold  on  time  the  party  who 
returns  them  is  credited  and  the  department  from  which  they  have  been  sold  is  charged. 
This  is  done  by  sending  a  credit  ticket  or  credit  memorandum  to  the  counting  room  for 
each  lot  of  goods  returned.  These  credit  tickets,  if  for  time  sales,  are  entered  on  a  Goods 
Returned  Abstract,  as  shown  in  the  illustration  above.  It  will  be  observed  that  this  form 
is  tlie  reverse  of  the  Abstract  of  Time  Sales  form  illustrated  on  ]iage  12-..'.     Tlie  footing 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


131 


of  this  form  is  entered  on  a  Daily  Summary  of  Good."?  Returned,  of  whicli  no  illustration  is 
given,  us  it  is  exactly  tiie  reverse  of  the  Summary  of  Daily  Sales  illustrated  on  page  124. 
For  each  cash  sale  the  credit  tickets  are  entered  on  the  Abstract  of  Cash  Goods  Returned 
form,  which  is  exactly  the  reverse  of  the  Abstract  of  Cash  Sales  illustrated  form  on  page  126. 

Credit  Meinoranda  Account.  Very  often,  in  the  case  of  cash  sales,  the  money  is  not 
refunded  at  the  time  the  goods  are  returned,  but  a  credit  memorandum  is  given  the  party 
who  returns  them.  In  that  event  the  department  from  which  the  goods  were  sold  is  charged 
for  the  amount  and  Credit  Memoranda  Account  in  the  General  Ledger  is  credited.  When 
a  credit  memorandum  is  received  in  payment  of  goods  from  some  other  department,  the 
department  is  credited  and  Credit  Memoranda  Account  is  debited.  When  a,ll  outstanding 
credit  memoranda  have  been  redeemed  Credit  Memoranda  Account  should  balance.  Credit 
memoranda  are  in  efleet  Bills  Payable,  payable  on  demand  either  in  merchandise  or  in  cash. 
Is  a  credit  memorandum  negotiable  or  non-negotiable?     Give  a  reason  for  your  answer. 

Rebates.  When  a  rebate  is  allowed  to  a  purcliaser  of  goods  on  credit,  that  person's 
account  is  credited  and  the  department  from  wliich  the  goods  were  sold  is  charged  for  the 
amount  of  rebate  allowed.  In  the  case  of  a  cash  sale,  when  the  amount  of  the  rebate  is 
refunded,  cash  account  is  credited  and  the  department  from  which  the  goods  were  sold  is 
charged.  Credit  memoranda  may  be  issued  for  rebates  as  well  as  for  goods  returned,  and 
are  treated  in  the  same  manner.  As  the  forms  used  in  recording  Rebates  are  in  all  essential 
particulars  like  those  used  in  recording  Goods  Returned  no  illustrations  of  such  forms  are  given. 

The  student  who  thoroughly  understands  the  use  of  the  various  forms  used  in  recording 
the  sales  and  purchases  in  a  department  store  will  have  no  diflBculty  in  designing  forms  in 
which  to  record  rebates  and  goods  returned.  Study  carefully  the  forms  used  for  recording 
the  sales  and  purchases. 

Sundry  Accounts.  When  a  sale  is  made  to  a  party  who  is  not.  a  regular  customer, 
instead  of  opening  an  account  with  him  on  a  separate  page,  the  entry  is  made  in  an  account 
headed  Sundry  Accounts,  or  Miscellaneous  Accounts,  as  it  is  sometimes  called,  together  with 
other  accounts  that  are  not  likely  to  be  permanently  active.     {See  illustration  below.) 

You  will  observe  that  in  the  illustration  the  space  occupied  by  each  account  takes  but 
two  lines — the  first  for  the  name,  the  second  for  the  address.  When  an  account  is  settled 
the  amount  is  entered  directly  opposite  and  a  check  mark  is  j^laced  on  the  center,  triple 
ruling  to  show  that  it  is  settled  in  full.  When  the  account  is  not  ])aid  in  full  a  short 
extension  may  be  made,  as  shown  in  the  first  and  last  items  in  the  illustration.  When 
desired  two  Sundry  Accounts  may  be  kejit — a  Sundry  Accounts  Receivalde  and  a  Sundry 
Accounts  Payable. 

Sundry  Aucounts. 


Geo.  W.  Dodson, 

Don  Juan,  Ind. 
Mrs.  Amie  Bowen, 

Avoca,  N.  Y. 
Ben  Becker, 

Rochester,  N.  Y. 
A.  P.  Root, 

Kingsville,  O. 
Jno.  Frey, 

Owensboro,  Ky. 
Miss  Clara  Kaiser, 

Hester,  Mo. 


189- . 
July. 

1 

10 

8 

40 

6 

189-. 

July. 

6 

7 

12 

24 

75 

V24 

75 

30 

21 

14 

88 

75 

V  88 

75 

5 

30 

22 

18 

72 

25 

2.5 

22 

12 

26 

1  12 

26 

8 

Aug. 

2 

27 

29 

4 

20 

9 

5 

Cash  5.00 

Cash 

Cash  50.00;  Aug.  5,  38.75 

Cash 
Cash  3.00 


132  OFFICE    ROUTINI-;    AND    BOOKKKEPING. 

Weuxesday,  Jii.Y  1.  is;i-. 

Iii  vestments  of  the  Partners.  Tlie  firm  name  of  the  )mrinership  is  to  be  J.  A.  Lumau 
&  Co.,  wliilf  the  liusiiiess  will  be  kiiouii  by  the  general  jmblic  as  the  City  Department  Store. 
The  partners  invest  the  resources  of  their  respective  businesses  and  the  liabilities  of  each  are 
to  be  paid  by  J.  A.  Luman  &  Co. 

J.  A.  Luman  invests  the  following  resources:  Cash,  8^11248.90:  Fi.xtures,  $400;  Shoes 
on  hand,  $16550;  due  from  Joseph  Scliwartz,  $26.50;  Albert  Basset,  $02.40;  Lyman  Smith. 
$67.25;  Albert  Spillman,  $.32.45;  Leroy  Gatcliell,  $12.80.  He  owes  on  account  as  follows: 
Utz  &  Dunn,  $2t»2.40;  Chick  Bros.,  $729.32;  Jno.  Mundell  &  Co.,  $567.49. 

II.  T.  Williams  invests  as  follows:  Cash,  $9280;  Fi.xtures,  $350;  Gloves  on  hand,  $21250; 
due  from  J.  D.  Malone,  $12.95;  Paul  Deom,  $67.20;  George  Xoble,  $132.40;  Mrs.  Nancy 
Hicks,  $9.80;  Mrs.  A.  Powell,  $13.75;  J.  \V.  Brady,  $19.22.  He  owes  Glover  Manufacturing 
Co.,  $292.45;  Boston  Glove  Co.,  $892.40;  Chicago  Manufacturing  Co.,  $1684.25;  IL  G.  Wells 
&  Co.,  $321.56. 

Thos.  H.  Betts'  resources  are:  Cash,  $11285.60;  Fixtures,  $525;  Hats  on  hand,  $12820; 
due  from  W.  B.  James,  $10.80;  Cyrus  W.  Van  Winkle,  $9.20;  Harmon  Mosby,  $29.56;  J.  M. 
Glea.son,  $14.28;  S.  E.  Walters,  $22.65.  He  owes  Jno.  B.  Stetson  Co.,  $872.40;  Eochester 
Hat  Co.,  $376.89. 

C.  H.  Evans  invests  as  follows:  Cash,  $17482;  Fi.xtures,  $400;  Dress  Goods  on  hand, 
$9126;  owing  by  Miss  Josie  Xicolay,  $76.40;  Mrs.  L.  Lorch,  $22.86;  Lafayette  Miller,  $47.29; 
Chas.  F.  Marting,  $120.50.     He  owes:     Jno.  Gibson,  $972.40;  J.  W.  Kiddle,  $269.26. 

Abraham  Levy  makes  the  following  investment:     Cash,  $17950;  Fi.xtures,  $450;  Clothing 
on  hand,  $9780.     He  owes  Emerald  -Mills,  $3286.40;  Jas.  Allison's  Sons,  $1982.02. 

Make  the  entries  for  the  partners'  investments  in  the  Journal,  similar  to  the  entry  illus- 
trated on  jiage  87.  Short-extend  the  cash  items  as  the  partners  will  receive  credit  for  their 
cash  investments  on  the  cashier's  detailed  statement  for  the  General  Ledger.  Debit  the 
goods  invested  by  their  titles  (Shoes,  Gloves,  Hats,  Dress  Goods,  Clothing)  instead  of 
including  them  all  under  the  general  term,  Jlerchandise.  This  is  done  so  that  the  gain  or 
loss  on  each  sei)arate  kind  of  goods  may  be  a.scertaiued. 

Note. — These  entries  are  made  in  the  books  of  the  general  iKwIikeeping  department  and  are  all  posted 
lo  (he  General  Ledger.  In  every  step  taken  the  student  should  ascertain  in  what  department  of  the  count- 
ing room  work  he  is  engageil.  This  i.s  very  important  if  the  .student  desires  to  gain  a  clear  understanding 
of  the  duties  of  the  bookkeepers  in  the  various  departments. 

Duties  of  tlic  Partners.  As  i)er  agreement  the  duties  of  the  i)artiicrs  are  as  follows: 
J.  A.  I.iiin:iii  will  be  the  Purehasing  Agent  for  the  firm:  H.  T.  Williams  will  be  the  Credit 
^lan:  Tli(i.<.  11.  Betts  will  be  the  Treasurer  of  the  concern  and  will  have  charge  of  the  cash 
and  finances.  C.  K.  Evatis  will  have  supervision  of  the  various  ilerchandise  Departments 
of  the  store;  and  .Mjraham  Levy  will  he  the  Advertising  Manager  iind  will  have  charge  of 
the  Emj)loyment  Department.  While  each  of  the  partners  will  be  in  charge  of  a  certain 
dejiartmcnt  of  the  work,  they  will,  nevertheless,  assist  one  another  whenever  such  assistance 
is  required  or  thought  to  l)e  advantageous  to  the  mutual  interests  of  the  jiartncrs. 

Employees.  The  former  employees  of  the  partners  will  be  retained  in  the  enijiloy  of 
the  new  firm.  'J'heir  names,  numbers  and  wages  agreed  upon  are  as  follows.  Enter  their 
names,  numbers  and  wages  jH-r  week  in  the  Pay-IloU  Book,  referring  to  the  instructions  and 
illustration  on  page  128.     Letive  two  lines  blank  after  the  last  name  in  each  dei)artment. 

Shoe  Depakt.men't.  Clarence  Small  (1),  manager  of  dejiartmeiit.  $25.00;  William 
Curtice  (2),  $10.00;  Mi.s.s  Jennie  Sampson  (3),  $8.00;  Miss  Mary  Muri.liy  (4),  $9.00;  John 


OFFICE    ROUTINE    AND    BOOK  KEEPIXC.  I'.V.i 

Nostrand  (5),  $9.00;   James  O'Neill  (0),  $9.00;    Miss  Miiude  Youngs  (7),  $IO.OO;   Miss  L. 
Sweetland  (8),  $10.00;   Miss  Kate  Franklin  (9),  $8.00;    Miss  Mamie  LaFever,  (10),  $8.00; 

B.  R,  Rosecrans  (11),  $8.00;    Herbert  Downing  (l'^).  $11.00;    Daniel   Murjdiy  (13),  $11.00; 

C.  A.  Vanduyne  (14),  $10.00;  Clias.  Saudwick  (15),  $9.00. 

Glove  Department.  Miss  B.  Steele  (25),  manager  of  department,  $30.00;  Miss  Lizzie 
Sullivan  (2(J),  $9.00;  Orma  Blakely  (37),  $10.00;  James  Reid  (38),  $13.00;  Chas.  Hicks 
(29),  $12.00;  Miss  Lucy  Wade  (30),  $9.00;  Miss  Mae  Greenfield  (31),  $9.00;  R.  W.  Bur- 
lingham  (32),  $10.00;  Miss  Mabel  Austin  (33),  S9.00:  John  DeWitt  (34).  $11.00;  Harvey 
FoUz  (35),  $13.00. 

H.\T  Dep.\rtment.  Lawrence  Kinney  (50),  manager  of  department,  $30.00;  Elgae 
Baker  (51),  $8.00;  Miss  Sara  Hobart  (53),  $9.00;  Miss  Addie  Stearns  (53),  $9.00;  Claude 
Loomis  (54),  $11.00;  Wm.  Amerman  (55),  $9.00;  Miss  Jessie  Hunt  (50),  $8.50;  Miss  Edna 
Waters  (57),  $9.00;  Howard  Evans  (58),  $10.00;  Miss  May  Hoagland  (59),  $8.50;  Frank 
Erb  (60),  $9.50. 

Dress  Goods  Department.  Louis  Emerson  (75),  manager  ot  department,  $30.00; 
Harry  Fuller  (76),  $25.00;  Miss  M.  Lluwellyii  (77),  $22.00;  Miss  Helen  Waite  (78),  $18.00; 
Miss  Essie  Parks  (79).  $18.00;  Miss  Nancy  Edmonds  (80),  $13.00;  Mrs.  J.  H.  Bowkcr  (81), 
$15.00;  H.  A.  AVheat  (82),  $18.00;  L.  M.  Lillie  (S3),  $18.00;  Miss  Florence  Smith  (84), 
S16.50;  Miss  Delia  0.  Hawley  (85),  $1(1. OO;   Warren  Shernuin  (80),  $10.50. 

Clothing  Department.  Isaac  Black  (100),  manager  of  department.  $35.00;  James 
Corrigan  (101),  $15.00;  Henry  Welch  (103),  $18.00;  Jacob  Hondorf  (103),  $13.00;  Alfred 
Rounds  (104),  $20.00;  William  Green  (105),  $14.50;  Harold  Harding  (106),  $13.00;  Arthur 
Deitz,  Jr.  (107),  $14.50;  C.  W.  Wilson  (108),  $15.00;  Denton  AVood  (109),  $19.00;  Claude 
Helmer  (110),  $10.50;  Morris  Cone  (HI),  $18.00;  Clarence  Leonard  (112),  $10.00;  Lee 
Winters  (113),  $13.50;  Gordon  Sjiringer  (114),  $14.50;  Edwin  Harmon  (115),  $15.00; 
Carrol  Slade  (116),  $13.00;  W.  A.  Donald  (117),  $14.00;  H.  Patterson  (118),  $14.00; 
Lorenzo  Glover  (119),  $13.50. 

The  names  of  the  partners  and  of  the  employees  in  the  counting  room  are  not  entered  in 
the  Pay  Roll,  as  their  salaries  are  paid  monthly  and  are  charged  to  Ex[)ense.  The  salaries 
of  the  partners,  as  per  agreement,  are  to  be  $150.00  per  month.  The  employees  engaged  to 
do  counting  room  work  are;  John  W.  Scull,  A  to  G  sales  bookkeeper;  Caleb  Knight,  li 
to  M  sales  bookkeeper;  Jas.  Hargis,  Mc  to  R  sales  bookkeeper;  and  Jno.  Patrick,  S  to  Z 
sales  bookkeeper,  each  of  whom  is  to  receive  $60.00  per  month  for  his  services.  No  one 
has  been  employed  in  either  the  Cash  or  Purchases  departments.  The  student,  assisted  by 
the  Treasurer  and  Purchasing  Agent,  is  to  do  the  work  in  these  departments  while  he  is 
engaged  in  opening  the  books.  After  the  books  have  Ix'cn  opened  a  cashier,  a  purcliase 
ledger  bookkeeper,  a  general  bookkeeper  and  necessary  assistants  will  be  enndoyed.  The 
student  is  to  receive  $10.00  per  day,  which  is  considered  very  ordinary  jmy  for  opening 
books,  adjusting  accounts  or  doing  any  of  the  work  usually  done  by  thi'  c'xpert  accountant. 
The  student  should  not  make  the  mistake  of  considering  himself  an  expert  accoujilmd, 
simply  because  he  is  doing  a  work  of  a  similar  nature  to  that  done  by  ('xjiert  accountants. 

Purchases.  The  Purchasing  Agent  has  made  purchases  as  listed  below;  the  goods 
have  arrived  and  are  found  to  agree  with  the  invoices.  In  business  these  invoices  would 
be  numbered  consecutively  and  filed  in  a  similar  manner  as  soon  as  entered.  JIako  the 
entries  from  the  data  furnished,  in  the  Abstract  Purchase  Ledger  and  also  in  the  Dejjart- 
ment  Charges  form.     In  making  the  entries  be  sure  to  enter  the  date  of  the  invoice,  the 


I     ■  i  I  ».    K.    I    1    I    I  ' 


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l;',(3  UKriCE    KOUTINK    AM)     BOOKKEKI'l  NC. 

J.  W.  lliurisoii,  i?12.4o;  i>-7,  Kicliard  Smvtlie,  ^i.To;  G-.',  Aiulivw  Melniyre,  ll-i.Go;  5-8, 
Jos.  E.  McGregor,  S13.S5;  0-1,  Murtiu  Schneider,  U.U;  C-.3.  Wni.  Henniiig,  nSAO; 
1-13,  Henry  Beaver,  ^12. 30:  7-12,  Miss  Lillian  Betts,  |il5.o0;  7-11,  Donald  M.  Hcpler, 
$12.80;  8-3,  Miss  Anna  Spencer,  §-1.7!t:  7-2,  Paul  Snyder,  :jl4.70:  1.3-5,  Jno.  M.  McKinley, 
$9.25;  7-1,  Mrs.  Kate  McKenna,  $14.80;  8-11,  A.  K.  Stephenson,  $G.30:  1-4,  B.  W.  Hay- 
den,  $9.20;  4-8,  Dr.  C.  JI.  Brucker,  $9.50;  13-G,  ]\Irs.  Henry  Bader,  $22.25;  10-5,  Thomas 
Hawkins.  *7.45;  2-9,  Jno.  M.  Stone,  $9.40;  8-1,  Miss  Mamie  McXeill,  $14.45;  4-9,  Frank 
W.  Taylor,  $4.11;  2-3,  Mrs.  Geo.  Hyde,  $7.40;  1-14,  Clarence  W.  Campbell  ,$12.50;  9-0, 
A.  B.  Jennings,  $8.75;  11-14,  AVm.  Underwood,  $4.50;  14-10,  Mrs.  T.  P.  ^fcMenamin, 
$14.85:  14-4,  Frank  X'ayl"'"-  $16.85;  13-7,  Edgar  M.  A^iil,  $12.25:  4-13,  Mrs.  C.  AV.  Jeffer- 
son, $9.25;  5-0,  11.  S.  Collins,  $7.80;  11-9,  J.  E.  M.  Keller,  $12.25;  3-9,  Adam  Vogel, 
$12.10;  8-10,  Miss  Mabel  Xeilson,  $4.50;  4-11.  Harvey  Ni.\on,  $14.90;  14-12,  Frank  M. 
Wagner,  $10.12;  3-11.  Henry  Kenii)f,  $9.25;  11-13,  P.  Cassidy,  $10.00:  13-8,  Miss  Josie 
Nicolay,  $10.85;  14-2,  H.  J.  Walker.  $10.25;  0-11,  Lawrence  Kiefer,  $12.25;  8-3,  Ralph  E. 
Cooke,  $13.45;  11-12.  Wni.  Kitchen,  $9.40;  9-13,  Peter  M.  Ward,  $0.50;  2-7,  J.  S.  Xor- 
thorp,  $13.75;  3-8,  H.  IL  Watterson,  $4.50;  12-5,  Miss  Sarah  Keini,  $12.50:  15-11,  J.  W. 
Clark,  $13.75;  7-3,  -Airs.  H.  W.  Dickinson,  $12.95;  5-9,  R.  G.  Laird,  811.45;  15-8,  Frank 
Zimmer,  $4.15:  10-11,  William  Nye,  $19.50;  11-1,  Edward  O'Connor,  $5.25;  2-8,  Allen  H. 
Oliver,  $18.48;  2-12,  Chas.  Lake,  $9.85;  14-11,  C.  G.  Davis,  $7.85;  3-10,  Solomon  Erb, 
$19.40;  4-10,  D.  E.  Parsons,  $14.21;  14-3,  Geo.  Eaton,  $8.47;  9-12,  H.  B.  Lehman,  $14.05; 
12-6,  H.  E.  Eastwood,  $l!t.44;  G-12,  Alfred  Quinn,  $7.40;  2-10,  Jno.  E.  Zeigler,  $4.75; 
4-12,  Mrs.  G.  W.  Miner,  $14.50;  4-7,  Miss  Euphemia  Faucett,  $6.80;  4-6,  Geo.  E.  Munson, 
$25.50;  6-13,  Miss  Amie  Rathbun,  $14.25;  2-11,  Jno.  R,  Fell,  $12.40;  14-1,  Herman  Ziimm, 
$4.55;  3-4,  C.  H.  Remington,  $4.05;  15-10,  Miss  Mary  Gilles,  $14.65. 

Verify  your  work.  Ascertain  the  footing  of  the  money  column  on  each  sheet.  Lay 
aside  the  sheets  for  the  Shoe  Dei)artmont  and  head  another  lot  for  the  Glove  Department, 
following  previous  instructions.  He  sure  to  curry  out  these  instructions  for  every  de])art- 
ment. 

Glove  Depaictment.  31-11,  Mrs.  E.  McDaniei.  $4.04;  26-2,  J.  W.  Harrison,  $5.50; 
2G-1,  J.  G.  Atkinson,  $13.20;  27-13,  W.  E.  Schcrinerhorn.  $5.75;  25-17,  Geo.  McFarlan, 
$12.30;  31-13,  Geo.  Heitz,  $7.40;  31-2,  George  Bauer,  $3.75;  28-10,  Albert  E.  Shaw,  $4.37; 
35-14,  Edwin  Short,  $3.05;  27-10,  Miss  Lillian  Betts,  $2.00;  32-1,  Donald  M.  llepler, 
$7.85;  28-11,  Andrew  Mclntyre,  $14.10;  33-15,  Jos.  E.  McGregor,  $3.40;  33-7,  B.  W.  Hay- 
den,  $12.45:  25-5,  Frank  Casper,  $6.00;  31-15,  Paul  Snyder,  $6.85;  28-7,  J.  W.  Clark, 
$8.47;  28-8,  Mrs.  J.  G.  llinolf,  $4.80;  27-12,  Burton  E.  McGuire,  $4.25;  33-17,  Thomas 
Hawkins,  $9.80;  31-12,  (ieo.  Eaton,  $10.50;  34-8,  Miss  Anna  Spencer,  $15.05;  27-14,  A.  K. 
Stephenson,  $4.25;  27-1,  H.  E.  Eastwood,  $7.00;  27-2,  Mrs.  Geo.  Hyde,  $4.25;  33-10,  Mrs. 
Kate  McKenna,  $5.50;  30-10,  Geo.  W.  Jones,  $0.40;  31-1,  Miss  Euphemia  Faueett,  84.25; 
29-9,  Jno.  M.  Stone,  $14.75;  30-13,  Miss  Lulu  Tate,  $18.45;  32-14,  Jno.  R.  Fell,  $9.25; 
29-8,  A.  B.  Jennings,  $4.20,  34-7,  Jno.  M.  MeKiuley,  $14.87;  26-15,  Mrs.  T.  P.  AIcMena- 
min,  $45.00:  34-9,  Mrs.  C.  W.  JelTerson,  $4.50;  26-11,  Albert  Ginglebach,  $12.25:  26-16, 
Frank  W.  Taylor,  $0.50;  28-9,  Morris  Thatcher,  $31.50;  30-9,  Jno.  M.  Glcason,  $12.40; 
25-6,  Walter  Kane,  $9.20;  32-13,  Miss  Mabel  Neilson,  $10.85;  34-13,  Martin  Newman, 
$14,85;  30-14,  Miss  Josie  Nieolay,  $4.50;  32-3,  Fred  W.  Townsend,  $4.75;  33-8,  Edgar  M. 
Vail,  $4.50;  28-14,  J.  E.  M.  Keller,  $7.05;  29-10,  Harvey  Nixon,  $11.70;  31-3,  Jno.  Noble, 
$7.80;  34-14,  Adam  Vogel,  $5.75;  25-7,  Frank  M.  Wagner,  $4.50;  35-3,  Chas.  Kaehler, 
$11.75:  32-4,  William  Nye,  $9.25;  25-10,  Edward  0'Coi\nor,  $14.35:  35-8,  Henry  Kempf, 


OFFICE    ROUTINE    AND     llOOKK  EICPING.  187 

U.'iO;  29-U,  Ch:is.  K.  Gibson,  $2.50;  32--J,  H.  J.  Walker,  U.2o;  .'33-9,  Geo.  W.  Ottiuger, 
$i;».24;  30-11,  Wm.  Kitchen,  $13.25;  28-13,  Miss  Mary  Gilles,  $7.25;  31-14,  Cora  Walters, 
$8.45;  yn-7,  Theodore  Gilles,  $9.45;  35-4,  Chas.  Lake,  $12.50;  30-15,  Allen  H.  Oliver,  $9.18; 
28-12,  C.  N.  Palmer,  $11.40;  35-11.  H.  B.  Lehman,  $4.(50;  3(5-10,  L.  K.  Grainger,  $11.45; 
35-7,  A.  C.  Yates,  $4.15;  29-15,  D.  E.  Par.sons,  $4.25;  27-3,  Geo.  E.  Munson,  $10.45;  30-12, 
Frank  Zinimer,  $9.50;  27-15,  Albert  (iuinn,  $9.75. 

Hat  Department. — 52-2,  Miss  Paulino  Sale,  $15.75;  50-11,  Geo.  Ileitz,  $4.25;  55-1, 
Samuel  AlthofE,  $0.40;  52-3,  Andrew  Mclntyre,  $4.00;  57-1,  Richard  Smythe,  $3.50;  56-3, 
Wm.  Henning,  $4.50;  53-2,  Mrs.  Geo.  Anderson,  $7.80;  53-1,  Jos.  E.  McGregor,  $8.95; 
50-5,  Paul  Scull,  $7.50;  57-3,  B.  W.  Hayden,  $5.50;  54-0,  J.  B.  Atkinson,  $19.80;  59-13, 
Jiio.  M.  McKinley,  $3.65;  51-10,  E.  V.  Neal,  $14.85;  50-4,  Mrs.  Henry  Bader,  $14.00; 
59-2.  Thomas  Hawkins,  $2.50;  51-3.  Edwin  Short,  $14.85;  53-13,  Paul  Snyder,  $19.50; 
53-3,  Mrs.  M.  Jacobs,  $4.25;  59-1,  Clarence  W.  Campbell,  $7.25;  50-0,  Frank  Naylor,  $4.30: 
58-11,  Harvey  Nixon,  $4.95;  55-2,  R.  S.  Collins,  $3.40;  50-2.  Geo.  W.  Jones,  $4.75;  54-2, 
Miss  Anna  Spencer,  $4.09;  54-15;  A.  K.  Stephenson,  $12.55;  58-13,  A.  B.  Jennings,  $3.50; 
58-12,  P.  Cassidy,  $7.25;  56-14,  Jno.  Noble,  $3.50;  51.14,  Jno.  Northorp,  $7.50;  50-12, 
Ralph  E.  Cooke,'$7.85;  58-2,  Walter  Kane,  $3.45;  50-13,  Frank  W.Taylor,  $15.40;  50-10, 
J.  E.  M.  Keller,  $4.75;  56-5,  J.  W.  Clark,  $14.26;  52-4,  William  Nye,  $14.85;  51-0,  Mrs. 
H.  V[.  Dickinson,  $9.25;  58-14,  Chas.  Kaehler,  $4.75;  59-3,. Fred  W.  Townsend,  $12.50; 
53-4,  Lawrence  Kiefer,  $14.75;  52-15,  C.  0.  Dinwiddie,  $8.60;  51-5,  Allen  H.  Oliver, 
|!14.15;  54-4,  Alfred  Quinn,  $12.80;  51-8,  Mrs.  Wm.  Emery,  $4.20;  51-15,  Wm.  Kitchen, 
$5.75;  58-10,  Wm.  Underwood,  $10.00;  59-14,  Adam  Vogel,  $0.35;  50-1,  Miss  Sarah 
Keim,  S9.25;  51-7,  R.  G.  Laird,  $5.60;  53-14,  Peter  M.  Ward,  $4.25;  54-3,  H.  H.  Watter- 
son,  $10.45;  52-10,  II.  B.  Lehman,  $9.95;  59-12,  Frank  Zimmer,  $12.25;  54-1,  Geo.  W. 
Martin,  $3.50;  54-16,  Miss  Euphcmia  Faucett,  $12.45;  50-13,  Jayson  Rummel,  $12.25; 
57-2,  Mrs.  Lottie  Mitchell,  $9.40;  51-4,  Herman  Zumm,  $12.15;  51-8,  Mrs.  G.  W.  Miner, 
#9.85;  54-5,  Jno.  M.  Gleason,  $9.05. 

Dress  Goods  Department. — 84-10,  Mrs.  Kate  McKenna,  $145.25;  86-2,  Mrs.  J.  G. 
Hinolf,  $48.25;  85-8,  Miss  Mary  Ambler,  $10.85;  83-3,  Paul  Scull,  $19.45;  80-2,  Walter 
W.  Stern,  $75.43;  84-4,  Mrs.  Emma  Adams,  $24.25;  83-2,  Mrs.  Geo.  Hyde,  $21.75;  78-3, 
Jno.  M.  McKinley,  $04.35;  76-3,  Mrs.  T.  P.  McMeiuimin.  $148.56;  85-9,  Mrs  M.  Jacobs, 
$17.45;  78-0,  George  Bauer,  $14.20;  78-4,  Miss  Lulu  Tate,  $41.50;  81-7,  Albert  A.  Bor- 
ton,  $17.50;  80-3,  Mrs.  C.  W.  Jefferson,  $20.75;  82-10,  Miss  Mabel  Neilson,  $137.45;  70-5, 
Henry  Kemiif,  $45.75;  SO-1,  Frank  Casper,  $16.20;  81-8,  Morris  Thatcher,  $124.17;  70-1, 
Mrs.  H.  AV.  Dickinson,  $17.81;  84-9,  Miss  Sarah  Keim,  $19.48;  83-1,  Miss  Josie  Nicolav, 
$31.25;  78-1,  Frank  Krauss,  $48.90;  76-2,  Mrs.  Wm.  Emery,  $38.95;  78-5,  Edgar  M.  Vail, 
$98.50;  79-10,  Miss  Eui)hemia  Faucett,  $44.23;  85-2,  H.  B.  Lehman,  $19.85;  85-1,  Jno. 
Noble,  $17.48;  78-2,  Mrs.  Lottie  Mitchell,  $74.85;  78-7,  Miss  JI.  E.  Frost,  $35.40;  76-7, 
J.  A.  Vanderbelt,  $23.50;  75-10,  Mrs.  A.  K.  Gilbert,  $38.25;  80-1.  William  Nye,  $106.24; 
76-0,  L.  V.  Maurer,  $34.15;  70-4,  C.  H.  Remington,  $20.25. 

Clothing  Department.— 109-2,  B.  W.  Hayden,  $14.75;  llo-l.  Miss  Pauline  Sale, 
$2.20;  118-2,  Geo.  McFarlin,  $41.45;  110-5,  Mrs.  Geo.  Anderson,  $22.60;  100-2,  Dr.  C. 
M.  Brucker,  $42.50;  104-5,  Andrew  Mclntyre,  $47.45;  114-3,  Ricliard  Smythe,  $18.75; 
119-5,  Mrs.  Geo.  Hyde,  $17.00;  100-5,  A.  B.  Jennings,  $36.55;  113-0,  Martin  Schneider, 
$18.95;  118-3,  Burton  E.  McGuire,  $15.00;  118-1,  Clarence  W.  Campbell,  $36.75;  114-0, 
R.   S.  Collins,  $29.50;    115-5,  Jno.    M.    :\IcKinley,   $51.40:    110-2,  W.    E.  Schermerhorn, 


138  OFFICE    ROUTINi;    AND    bUUK  KKKl'lNG. 

*18.4o;  117-S,  Mrs.  C.  W.  Jefferson,  $34.25;  117-3,  Walter  Kane,  $15.50:  lU-i,  Albert  E. 
Shaw,  !;24.r5;  110-4,  Mr.s.  T.  P.  McMenamin,  ^41.50;  110-G,  Jno.  W.  Clark,  S3T.45:  110-3, 
C.  0.  DinwitUlie,  *51.45;  104-4,  E.  V.  Neal,  $20.50;  100-3,  Edwin  Short,  $19.50;  lOG-6, 
J.  E.  M.  Keller,  $24.70;  101-3,  Chas.  Kaehlcr,  $10.25;  104-3,  Paul  Suyder,  §27.30:  119-2, 
Frank  Naylor,  $04.85:  107-1,  C.  G.  Davis,  $19.0'J;  115-0,  Martin  Newman,  $35.G0;  108-1, 
Albert  Sj.are,  $34.45;  102-3,  A.  K.  Stephenson,  $19.50;  114-4,  Harvey  Nixon,  $29.50; 
112-4,  Frank  W.  Taylor.  $35.00:  119-3,  Jno.  Noble,  $43.25;  101-2,  Morris  Thatcher, 
8135.50;  111-13,  AVni.  Kitchen,  824.50;  108-2,  Wm.  Underwood,  $18.25;  114-5,  Chas. 
Oakley,  $44.11;  112-5,  Solomon  Erb,  $38.00:  115-9,  J.  A.  Vanderbclt,  $19.75;  102-2,  Frank 
Krauss,  $31.50;  111-9,  Frank  Vick,  $35.40;  119-4,  Geo.  W.  Ottiugcr,  $87.40;  100-7,  C.  N. 
Palmer,  $19.50;  115-4,  Albert  Ginglebach,  $45.80;  117-1,  Adam  Vogel,  $29.28;  112-3, 
K.  G.  Laird,  $75.50;  107-9,  A.  C.  Yates,  $19.45;  109-1,  Chas.  Lake,  $3^0.40;  117-2,  Frank 
Zimmer,  $14.25;  100-4,  Alfred  Quinn,  $15.45;  113.7,  Chas.  K.  Gibson,  $40.75:  119-8, 
Jayson  Rummel,  $19.50;  115-8,  Jno.  E.  Ziegler,  $25.40;  105-3,  Geo.  W.  Martin,  $28.35; 
105-12,  Herman  Zumm,  $25.10;  105-^1,  Valentine  Kess,  $45.25;  107-2,  L.  K.  Grainger, 
$58.00;  102-1,  L.  V.  Manrer,  $28.90. 

Ee-add  tlie  items  on  ail  the  slieets  to  satisfy  yourself  that  the  footings  are  correct.  Enter 
the  footings  in  the  Summary  of  Daily  Sales  as  illustrated  on  page  124.  Ascertain  the  total 
sales  for  each  Sales  Ledger  and  enter  the  amount  in  the  Total  column.  Find  the  total  time 
sales  for  each  department.  The  footing  of  the  Sales  Ledger  totals  should  equal  the  footing 
of  the  department  sales.  If  found  to  agree,  assemble  the  Abstract  of  Time  Sales  sheets, 
place  a  rubber  band  around  them  and  put  them  aside.  They  are  not  to  be  handed  to  the 
Sales  Bookkeepers  until  they  have  been  jjroven  with  tlie  Clerks'  Daily  Sales,  as  taken  from 
the  Clerks'  Summary  sheets. 

Casli  Salt's.  Tiie  cash  sales  for  the  day  are  listed  below.  The  student  should  remem- 
ber tliat  in  bu.siness  a  sales  ticket  is  prejjared  in  duplicate,  by  the  sales  clerk  for  every  sale, 
and  that  the  entries  would  be  made  directly  from  the  original  sales  tickets,  instead  of  from 
the  data  as  given  herewith.  In  entering  the  following  sales  on  the  Abstract  of  Cash  Sales 
be  sure  to  give  each  department  credit  for  its  sales,  also  credit  the  clerks  by  number  in  the 
proper  column,  and  specify  tlie  number  of  each  sales  ticket. 

For  the  convenience  of  the  bookkeepers,  in  business  the  Abstract  of  Cash  Sales  sheets  are 
loose  sheets;  in  this  business  for  the  convenience  of  the  student  they  are  furnished  in  bound 
form. 

Shoe  Depaktment.— 1-6,  $10.20;  8-4,  $4.75;  9-5,  $9.40;  9-7,  $4.04:  10-4,  $10.00; 
7-10,  $14.80;  1-0,  $4.50;  11-8,  $9.25;  1-12,  $13.25;  5-15,  $0.15;  10-3,  $11.05;  12-8, 
$11.50;  11-11,  $3.00;  3-7,  $4.35;  5-1,  $10.00;  5-10,  $13.25;  C-10,  $7.15;  7-4,  $12.40;  8-9, 
$18.25;  9-1,  $10.12;  9-14,  $14.75;  11-7,  S15.00;  13-4,  $14.50;  11-10,  $3.50;  7^5,  $4.50; 
12-7,  $15.50;  2-13,  $15.30;  12-13,  $18.45;  8-13,  $4.25;  5-11,  $13.45;  11-15,  $4.30;  5-2, 
812.20;  2-14,  $12.25;  11-2,  $11.50;  10-10,  $0.40;  14-5,  $4.50;  3-12,  $9.74;  15-G,  $15.35; 
13-9,  $13.55;  15-7,  $4.49;  3-0,  $9.45;  14-9,  $3.24;  15-12,  $11.15;  3-^,  $9.25;  3-2,  $9.28; 
2-5,  $4.50;  5-4,  $3.50;  0-0,  $25.25;  1-8,  $8.45;  8-G,  $14.80;  3-1,  $4.50;  1-9,  $12.25;  10-2, 
$9.05;  9-3,  $24.80;  6-7,  $23.54;  5-5,  $7.50;  10-7,  $14.44;  11-4,  $37.40;-  13-2,  $17.00; 
12-10,  $4.45;  13-12,  $12.10;  4-3,  $4.00;  7-7,  $7.85;  13-13,  $13.14;  5-14,  §95.84;  8-7, 
$7.81;  2-0,  $12.84;  9-4,  $4.50;  12-2,  $10.25;  15-3,  $5.00:  11-5,  $4.25;  7-8,  $8.45;  10-8, 
§15.85;  14-7,  $14.70;  15-3,  $11.80;  4-4,  $23.50;  9-10,  $12.45;  3-3,  $11.50;  13-11,  $29.20; 
12-9,  $27.45;  13-1,  $37.40;  15-13,  $8.75;  12-1,  $39.25;  15-14,  $12.25;  12-11,  $24.50;  14-6, 


Ul'KICE    ROUTINE    AND    BOOKKEEPING.  139 

$10.15;  -1-5,  U.25;  9-11,,  $13.40;  3-1,  $4.75;  G-5,  $15.40;  5-3,  $8.50;  1-7,  $4.35;  7-9, 
$13.75;  1-10,  $G.50;  8-5,  $30.40;  1-11,  $4.50,  6-8,  $7.25;  4-3,  $3.50;  9-3,  $11.10;  10-1, 
$8.90;  11-3,  $14.50;  15-1,  $11.70;  13-3,  $4.75;  13-4,  $3.50;  13-14,  $35.00;  8-8,  $14.81; 
6-9,  $10.00;  7-6,  $15.40,  9-8,  $9.75;  10-6,  $18.70;  14-8,  $4.85;  11-6,  $6.75;  15-4,  $13.51; 
5-13,  $30.50;  4-1,  $18.35;  8-12,  $10.50;  5-13,  $11.40;  10-9,  7.65;  13-10,  $4.75;  13-3, 
$17.40;  15-5,  $3.35;  3-15,  $14.75;  10-13,  $13.80;  12-13,  $20.50;  9-9,  $4.50;  15-9,  $10.00. 

Glove  Department.— 25-3,  $5.75;  39-1,  $4.37;  31-10,  $3.65;  34-1,  $6.85;  38-17, 
$15.65;  27-11,  §4.35;  34-3,  $14.75;  29-3,  $18.45;  36-3,  $6.50;  31-4,  $11.50;  33-5,  $4.75; 
33-11,  $4.50;  25-15,  $4.25;  33-14,  $8.45;  30.16,  $4.15;  34-15,  $9.50;  29-3,  $21.50;  32-6, 
$2.25;  25-4,  $7.65;  33-5,  $4.25;  35-9,  $8.25;  29-11,  $8.56;  27-18,  $3.35;  28-5,  $3.15; 
30-17,  $4.00;  36-9,  $14.35;  33-16,  $4.75;  31-5,  $10.15;  35-2,  $4.45;  33-6,  $10.47; 
26-12,  $4.35;  27-17,  $4.50;  25-8,  $5.25;  30-7,  $4.75;  28-6,  $8.57;  25-9,  $9.21;  27-4, 
$10.12;  31-16,  $6.55;  35-13,  $3.10;  32-15,  $14.85;  30-8,  $9.47;  31-17,  $6.34;  34-12, 
$10.45;  27-5,  $4.35;  3.3-13,  $4.50;  26-4,  $43.75;  3.3-3,  $9.45;  34-3,  $6.40;  27-10, 
$64.50;  35-1,  $15.10;  28-3,  $46.14;  35-6,  $18.30;  30-3,  $35.49;  34-4,  $10.48;  25-13,  $34.10; 
29-4,  $12.38;  35-5,  $36.83;  33-2,  $4.25;  26-5,  $11.40;  34-11,  $19.60;  29-5,  $10.12;  25-14, 
$21.50;  32-7, -$4.25;  30-4,  $10.13;  33-4,  $4.85;  32-8,  $7.45;  28-4,  $6.48;  34-10,  $12.40; 
29-13,  $3.50;  26-8,  $14.85;  31-6,  $9.80;  30-5,  $8.95;  28-15,  $16.40;  27-6,  $35.50;  33-9, 
$4.75;  30-6,  $6.25;  31-7,  $9.60;  25-10,  .$4.25;  28-16,  $3.00;  30-18,  $9.50;  27-7,  $5.25;  26-13, 
$4.75;  35-10,  $11.50;  25-11,  $4.80;  35-13,  $13.40;  39-13,  $5.25;  33-16,  $6.40;  26-14,  $9.50; 
25-1,  $4.50;  28-2,  $10.35;  30-3,  $7.80;  33-12,  $4.50;  36-7,  $12.45;  33-1,  $16.20;  29-6,  $4.50; 
34-6,  $11.75;  37-9,  $9.81;  33-13,  $14.40;  31-9,  $30.35;  33-11,  $7.60;  25-3,  $10.75;  34-5, 
$11.15;  30-1,  $4.50;  32-10,  $7.35;  26-6,  $13.40;  31-8,  $19.30;  28-1,  $6.25:  37-8,  $4.30; 
25-12,  $11.48. 

Hat  Department.— 53-6,  $10.35;  54-7,  $12.45;  55-3,  $31.50;  56-6,  $4.50;  57-4,  $10.00; 
50-9,  $4.25;  53-5,  $13.14;  55-4,  $6.70;  53-9,  $7.65;  51-2,  $12.47;  53-11,  $18.50;  58-16, 
$9.78;  53-11,  $8.47;  51-9,  $10.50;  56-7,  $12.47;  57-5,  $18.50;  54-8,  $7.65;  51-1,  $9.75;  55-5, 
$6.50;  58-9,  $12.50;  52-1,  $3.50;  53-12,  $14.75;  60-6,  $9.55;  59-5,  $4.37;  54-14,  $7.63;  60-4, 
$8.95;  51-13,  $14.85;  55-6,  $11.11;  60-5,  $35.50;  59-4,  $11.40;  00-11,  $4.25;  55-7,  $6.91; 
60-10,  $16.25;  50-7,  $12.20;  53-7,  $4.16;  60-13,  $5.45;  57-13,  $4.38;  60-7,  $9.25;  52-14, 
$5.29;  50-8,  $14.95;  60-8,  $8.47;  59-6,  $16.80;  60-9,  $4.25;  57-12,  $12.40;  50-1,  $6.25;  57-8, 
$5.00;  59-10,  $8.75;  55-13,  $4.75;  54-9,  $11.00;  55-14,  $4.25;  57-7,  $35.00;  56-9,  $13.78; 
58-3,  $19.81;  53-8,  $5.85;  58-15,  $11.41;  53-10,  $3.45;  59-11,  $14.91;  58-8,  $31.40;  58-4, 
$19.70;  56-10,  $4.75;  58-7,  $31.10;  57-6,  $18.35;  58-5,  $3.35;  50-14,  $19.81;  56-8,  $8.54; 
52-5,  $4.25;  55-8,  $11.40;  56-12,  $4.50;  52-12,  $5.25;  51-13,  $4.64;  55-9,  $3.45;  56-15, 
$11.05;  50-2,  $11.15;  60-14,  $3.45;  54-13,  $10.80;  55-10,  $4.50;  60-1,  $9.45;  5-3-8,  $3.50; 
59-7,  $6.40;  60-3,  $4.50;  57-10,  $13.50;  60-12,  $4.50;  53-13,  $3.25;  59-8,  $6.40;  57-14, 
$4.75;  60-3,  $10.05;  59-9,  $7.80;  57-11,  $4.50;  54-10,  $14.50;  57-9,  $8.75;  50-3,  $3.50; 
58-6,  $12.00;  52-7,  $11.75;  55-12,  $4.50;  54-11,  $5.35;  55-11,  $16.40;  56-11,  $7.85;  50-15, 
$13.30;  51-10,  $8.50;  54-13,  $7.35;  53-9,  $9.50;  51-11,  $6.15;  53-6,  $11.70;  50-4,  $18.40. 

Dress  Goods  Department.— 80-5,  $28.50;  80-6,  $17.64;  78-13,  $14.80;  76-8,  $9.63; 
80-4,  $30.75;  83-4,  $15.40;  79-11,  $18.35;  83-5,  $9.24;  76-9,  $16.41;  80-12,  $4.50;  81-9, 
$8.47;  83-6,  $15.35;  80-7,  $12.84;  85-10,  $6.38;  83-12,  $10.50;  79-8,  $8.40;  76-10,  $14.85; 
75-13,  $25.50;  84-5,  $19.45;  78-8,  $31.15;  81-10,  $24.35;  83-5,  $17.64;  79-9,  $20.40;  78-9, 
$13.80;  84-6,  $18.30;  82-6,  $3.46;  75-7,  $19.45;  84-7,  $6.81;  86-5,  $4.50;  75-8,  $19.27; 
78-10,  $10.14;  81-5,  $14.35;  82-7,  $4.85;  75-9,  $7.65;  86-6,  $34.85;  82-8,  $18.56;  86-7, 


140 


OFKICK     ROUTINE    AND     BOOKKEEPING. 


i.lo.-ib;  82-9,  *:14.:5;  83-1 1.  ?'.'.4U;  81-i;,  *04.SO;  84-12,  *;ir.40;  SG-8,  *:5.8-t:  8C-12,  |i9.G3 
8C-9,  *12.50;  85-5.  *10.25;  79-3,  $28.25;  85-G,  *-i4.8-l:  8C-10,  *12.15;  79-t,  $1:6.90;  77-1 
J;97.<;();  80-10,  $14.55;  83-7,  $19.09;  77-8,  $54.75;  79-5,  $21.55;  80-8,  $19.25;  77-9,  $11.08 
79-f;,  $4<;.75;  75-4,  $1(;.45;  SI-1,  $78.G0;  77-10,  $24.43;  79-7,  $11.21;  77-2,  $93.84;  82-3 
$14.81;  85-3.  $18.91;  82-4,  $58.45;  85-4,  $16.85;  81-2,  $34.50;  85-7,  $11.50;  86-3,  $25.40 
85-11,  $10.81;  75-5,  $68.48;  86-4,  $12.45;  81-3,  $14.50;  84-8,  $36.25;  86-11,  $84.75;  75-6 
$12.10;  84-11.  $14.4i»;  SI-4,  $11.10;  84-3,  $25.40;  82-11,  $15.40;  83-8,  $21.50;  84-2,  $54.60 
80-11,  $10.40;  83-9,  $19.85;  78-11,  $14.10;  76-11,  $.3.3.75;  83-10,  $36.85;  75-11,  $7.40 
75-1,  $25.00;  79-1,  $14.75;  77-5,  $21.40;  84-1,  $17.60;  77-6,  $10.25;  82-1,  $14.11;  77-7 
$28.35;  80-9,  $51.47;  77-3,  $14.85;  79-2,  $36.45;  75-2,  $19.27;  77-4,  $35.34;  82-2,  $18.36; 
75-3,  $12.70. 

Clothing  Dkpautmknt.  — 107-3,  $18.50;  116-4.  $12.40;  118-4,  $10.0U;  107-4.  $5.00 
119-1,  $3.50;  106-4,  $18.46;  103-4,  $19.00;  109-7,  $23.85;  lOG-5,  $17.63;  105-5,  $10.50 
103-5,  $11.40;  118-6,  $7.65;  116-3,  $9.40;  119-G,  $14.80;  119-7,  $22.75;  105-6,  $20.15 
103-6,  $46.20;  101-4.  $18.45;  100-8,  $2G.80;  118-7,  $18.75;  100-6,  $14.20;  101-8,  $20.15 
116-7,  $4.64;  102-8,  $19.45;  llG-1,  $18.15;  103-8,  $17.48;  105-S,  $8.00;  101-5,  $10.25 
106-8,  $12.40;  107-8.  $10.75;  100-7,  $11.40;  108-8,  $6.25;  117-4,  $8.40;  110-8,  $29.50 
113-1,  $18.24;  111-8,  $40.20;  117-5,  $4.50;  113-2,  $7.25;  112-8,  $18.45;  117-6,  $16.00 
113-3,  $8.40;  117-7,  $7.60;  113-4,  $4.20;  114-8,  $11.40;  103-1,  $18.00;  114-7,  $26.00 
110-5,  $12.00;  115-1,  $49.20;  103-2,  $10.00;  112-6,  $10.50;  115-2,  $27.50;  110-6,  $54.50 
103-3,  $16.40;  107-7,  $45.75;  110-7,  $33.00;  104-7,  $10.95;  112-7,  $24.75;  115-7,  $12.40 
111-1,  $97.05;  104-6,  $55.55;  111-4,  $12.11;  109-3,  $10.15;  102-9,  $19.48;  102-4,  $94.75 
109-4,  $19.27;  102-5,  $21.25;  100-9,  $10.10;  105-1,  $11.40;  108-3,  $56.76;  101-0,  $40.15 
105-9,  $89.25;  108-9,  $41.50;  108-4,  $14.25;  112-9,  $21.25;  114-9,  $104.85;  115-3,  $15.00 
118-8,  $42.85;  111-5,  $54.85;  113-5,  $37.60;  109-8,  $25.00;  111-0,  $31.25;  100-1,  $10.00 
108-5,  $79.40;  113-8,  $41.15;  108-7,  $90.50;  111-7,  $38.45;  108-6,  $25.00;  101-7,  $28.50 
107-6,  $18.00;  106-3,  $25.25;  107-5,  $14.80;  103-7,  $6.75;  114-1,  $12.40;  104-1,  $16.50 
118-5,  $24.75;  114-2,  $13.20;  104-2,  $11.85;  102-7,  $45.80;  105-7,  $14.75,  116-2,  $10.00 
109-0,  $12.85;  112-1,  $8.48;  109-5,  $17.00;  112-2,  $15.25;  100-1.  $8.05;  102-6,  $14.50 
106-2,  $0..50;  101-1,  $19.00. 

Foot  the  dejiarliiiL'iit  coluiniis  of  tlie  Abstract  of  Cash  Sales  sheets  to  ascertain  tlie  total 
sales  of  each  departtuont  for  tlu'  day.     Go  over  your  addition  a  .second  time. 

Clerks'  Diiily  Sales.  In  business  tlie  clerixs  liaiid  in  tlieir  summary  slieets  to  the 
General  liook keeping  Department  once  a  day,  wliere  the  daily  footings  are  verified  and 
entered  iu  the  Clerks'  Daily  Sales  book.  The  object  of  this  book  or  record  is  explained  on 
page  125.  In  this  business  only  tlie  daily  footings  of  the  Summary  sheets  are  given,  which 
tlie  student  will  enter  in  the  Clerks"  Daily  Sales  record  as  illustrated  on  Jiage  125.  Omit 
two  lines  after  the  last  name  in  each  depai'tineiit. 

Shoe  1)ki'ai{t.ment.  Clerk  1.  $140.42;  2,  $160.72;  3,  $107.97;  4,  $152.87;  5,  $240.74; 
6,  $161.19;  7,  $146.90;  8,  $139.06;  9,  $148.31;  10,  $142.39;  11,  $150.91;  12,  $224.69;  13, 
$232.59;  14,  $110.44;  1.5,  $139.80. 

Glovi:  Dei'autjient.  25,  $169.84;  26,  $228.60;  27,  $184.53;  28,  $206.03;  29,  $134.48; 
30,  $168.67;  31,  $1.56.68;  32,  $110.35;  33,  $140.96;  34,  $168.95;  35,  $150.68. 

Hat  Dkpautment.  50.  $143.71;  51,  $160.81;  52,  $130.74;  53,  $126.82;  54,  $162.52; 
55,  $121.77;  56,  $132.10;  57,  $142.43;  58,  $109.05;  59,  $121.33;  60,  $123.87. 


OFFICE    ROUTINE    AND    KOOK  KEEPING.  141 

Dress  Goods  Department.  ;5,  $-4;i.5-J;  ;(i.  «!409.(;i;  77,  $391. Sf);  78,  *U;0.09;  79, 
^207.54:  80,  $298.28;  81,  §352.14;  82.  *328.34;  83,  «!219. 13;  84.  *399.19:  8.5.  |;200.17:  81!, 
«;359.S1. 

Clothing  Dep-^rtment.  100,1180.50;  101.  8291.25;  102,1(295.13;  103,  $145.33;  104, 
«il9Ci.lO;  105,  $252.75;  106,  $132.49;  107.  $209.94;  108,  $372.3(i:  109,  $159.27;  110,  $242.00; 
111,  $305.10;  112,  $247.78;  113,  $170.54:  114,  $289.71;  115,  $282.05;  110,  $114.04;  117, 
$129.78;  118,  $197.20;  119,  $273.05. 

Find  the  footino-s  of  e;icli  (Icpartnii'iit  anil  entci-  tlicm  iu  red  ink.  Next  liml  tlio  lotal  of 
the  red  ink  footings. 

Cashier's  Statements.  The  cash  receipts  (otlier  tlian  casli  sales)  and  jtayments  are 
listed  below.     Enter  them  on  tlie  proper  detailed  statement  blanks  furnished  in  your  supplies. 

Receipts.  Sales  Ledgeis.  Miss  Lillian  Belts,  $8.10;  Paul  Snyder,  $21.55;  Andrew 
Mclntyre,  $20.75;  Thomas  Hawkins,  $15.00;  Mrs.  Geo.  Hyde,  $34.00;  J.  W.  Clark,  $55.00; 
Miss  Anna  Spencer,  $9.48;  Frank  Naylor,  $55.00;  A.  K.  Stevenson,  $25.00;  Geo.  Eaton, 
$14.97;  Mrs.  C.  W.  Jefferson,  $30.00;  Mrs.  Wm.  Emery,  $23.15;  Miss  Lulu  Tate,  $41.50; 
Miss  Josie  Nicolay,  $25.00;  Frank  W.  Taylor,  $50.00;  Miss  Euphemia  Faucett,  $50.00; 
Henry  Kempf,  $25.00;  Jno.  M.  Gleason,  $10.75;  Harvey  Nixon,  $41.20;  Chas.  K.  Gibson, 
$20.00;  Wm.  Kitchen,  $21.25;  Mi.ss  Mary  GiUes,  $15.00;  H.  B.  Lehman,  $30.50;  L.  K. 
Grainger,  $40.00;  Edgar  M.  Vail,  $100.00;  Allen  H.  Oliver,  $20.00;  Mrs.  G.  W.  Miner, 
$20.00;  Geo.  E.  Munson,  $10.00. 

Payments.  General  Ledger.  The  advertising  manager  lias  contracted  for  |-  page  space 
in  the  leading  local  papers  for  one  month.  The  price  agreed  upon  is  $1200.00,  witli  a  dis- 
count of  2  percent,  for  cash.  It  has  been  paid,  less  discount;  charge  the  net  amount  to 
Advertising  account. 

Pvrchnse  Ledger.  Turn  to  your  Abstract  Purchase  Ledger  and  ascertain  the  accounts 
that  will  have  to  be  paid  to-day  to  take  advantage  of  the  discount  offered.  Enter  all  sucii 
amounts  on  a  Payments- Purchase  Ledger  statement.  Be  sure  to  record  the  discount  in  the 
jiroper  column. 

Find  the  footings  of  all  the  statements  and  enter  them  on  the  Cashier's  Abstract  Statement. 
Be  sure  to  include  the  amount  of  cash  sales.     Find  the  balance  of  cash  on  hand. 

The  statements  are  now  ready  to  be  handed  to  the  General  Bookkeeping  Department, 
■where  they  will  be  verified,  the  items  on  the  Cashier's  Abstact  Statement  entered  in  the 
Abstract  Cash  Account,  and  the  detailed  statements  handed  to  the  various  departments 
where  they  belong.  This  you  will  now  do.  Be  sure  to  place  the  detailed  statements  iu  the 
filing  envelopes  of  the  proper  bookkeepers. 

The  footings  of  the  dejiartment  columns  of  the  Abstract  of  Cash  Sales  sheets  are  entered 
in  the  Summary  of  Daily  Sales  and  the  total  is  ascertained  and  extended  into  the  Total 
column.  This  total  sliould  agree  with  the  amount  of  cash  received  from  the  cash  sales  as 
exhibited  by  the  Cashier's  Abstract  Statement. 

Note. — la  business  the  Abstract  of  Cash  Sales  sheets  would  be  verified  with  the  sales  tickets  by  the 
Geueral  Bookkeeper,  after  which  the  sales  tickets  would  be  tiled  away  with  the  Abstract  of  Cash  Sales 
sheets  in  consecutive  order. 

Foot  the  Department  and  Total  columns  of  the  Summary  of  Daily  Sales  and  write  the 
footings  in  red  ink.  Next  compare  the  footings  with  the  department  and  total  footings  of 
tlie  Clerks'  Daily  Sales  record.  If  they  agree  you  will  place  the  Abstract  of  Daily  Sales 
sheets  in  the  proper  envelopes  for  the  sales  ledger  bookkeepers. 


14*2  OFKICE    ROUTINE    AND    BOOKKEEPING. 

Clerks*  Tinif.  Tlic  linu'  of  the  clerks  is  as  follows;  enter  same  in  tlie  Pay  Roll: 
Clerks  niiniUis  1.  X>,  3,  4,  5,  <i,  7,  8,  9,  10,  11,  12,  13,  14,  25,  20,  28,  29,  30,  31,  32,  33,  35. 
50.  51,  52,  53,  54,  55,  50,  57,  58,  CO,  75,  70,  77,  78,  79,  80,  81,  82,  83,  84,  80,  100,  101. 
102,  103,  105,  100,  107,  108,  109,  110,  111,  112,  113,  114,  110,  118,  119,  have  worked  full 
time.  Numbers  15,  34,  59,  117  have  worked  4  day  each.  Xumbers  27,  85,  104,  115  worked 
f  of  a  day  each.     (Xumbers  27  and  104  were  sick;  make  a  record  of  it.) 

Posting.  Oi)en  accounts  and  ])ost  to  the  General  Ledger  as  previously  instructed. 
Po-'t  the  items  on  tlie  Payments  Purchase  Ledger  sheet  to  the  Abstract  Purchase  Ledger. 
Don't  fail  to  record  the  discounts  in  tlie  discount  column.  The  items  on  the  Abstract  of 
Time  Sales  sheets  are  not  to  be  posted  by  the  student,  as  the  sales  ledger  bookkeepers  are 
supposed  to  do  that.  Post  the  total  sales  for  each  Sales  Ledger  as  exhibited  in  the  Sum- 
marv  of  Daily  Sales  to  its  proper  account  in  the  General  Ledger.  Check  over  the  ]iosting. 
Examine  all  the  filing  envelopes  to  sec  if  all  the  documents  are  filed  in  the  proper  envelopes. 

Present  books  and  filing  envelopes  for  inspection. 

The  jiartners  have  begun  negotiations  for  the  purchase  of  a  glove  manufacturing  plant, 
which  is  for  sale  at  a  very  low  jirice. 

Fkiday,  Jfi.Y   3,   1S9-. 

Puri'hascs.  The  i>urchases  to  be  entered  to-day  are  listed  below.  Enter  them  a,s 
previously  instructed. 

Cl.OTHiXG  Dkpaktmext.  I.«aac  vi:  Garsou  Co..  July  ],  2/10,  net  30,  ^872.40;  Strauss 
&  Kohn,  July  1,  3/10,  net  30,  $1282.22. 

H.\T  Depaktmkxt.     Jno.  Gilles  &  Sons,  July  I.  2/10,  net  30,  ^582.49. 

SiiOK  Dei'autment.     J^Iarlin  &  Winter  Co.,  July  2,  2/5,  net  20,  1:205.29. 

Credit  Sales.  The  credit  .sules  are  listed  below;  enter  them  on  Abstract  of  Time  Sales 
sheets  as  i)reviously  instructed. 

Shoe  Departmknt.  12-15,  Julius  llanscr,  *12.00;  0-22,  C.  L.  Behrns,  $12.00;  3-19, 
Jno.  C.  McCarthy,  si^>.:34;  ]0-lS),  Wni.  Sassaman,  $10.75;  13-17,  Kichard  Smythc,  $4.75: 
1-24,  Geo.  iAIcFarlau,  $11.00;  14-13,  Mrs.  Jno.  R.  Cassel,  $9.20;  14-22.  C.  W.  Hammond, 
*9..50;  13-23,  Alonzo  Hicks,  $13.25;  13-10,  Henry  Cooper,  $18.25;  7-23,  Thos.  McEIwain, 
$25.30;  2-19,  Albert  E.  Shaw,  $9.40;  .5-18,  Walter  Shearer,  $4.04;  2-25,  Burton  E.  Mc- 
Guire,  $9.40;  4-19,  C.  0.  Dinwiddie,  $15.80;  1-15,  Chas.  Harrington,  $14.75;  2-23,  Sam- 
uel Haldcrman,  $18.25;  5-19,  Chas.  Dodson,  $8.95;  13-24;  Edwin  McKcnzie,  $14.85;  0-21, 
Edwin  Short,  $10.00;  12-23,  Hiram  Simpson,  $14.80;  10-21,  E.  A.  McMickle,  $11.40; 
10-22,  Geo.  Engert,  $19.00;  3-18,  W'm.  Ininan,  $9.75;  4-22,  Mrs.  M.  Jacobs,  $9.75;  1-17, 
Jno.  E.  Eberhard.  $9.85;  3-24.  E.  V.  Neal,  $13.75;  9-22,  Paul  Steele,  $12.48;  4-18.  Wal- 
ter W.  Stern,  $11.05;  14-14,  Geo.  X.  Xash,  $9.30;  7-24,  Gustav  Fisher,  $13.45;  5-21,  J.  A. 
Jo.seph,  $8.45;  7-22,  Wni.  Johnson,  $13.25;  8-23,  Jno.  B.  Fowler,  $11.40;  1-10,  Andrew 
J.  Xellis,  $8.50;  14-23,  Fred  W.  Townsend,  $t;.15:  10-18,  Wm.  Yanderpool,  $11.25;  1.5-21, 
Martin  Xewmau,  $9.84;  2-24,  Jno.  M.  Glea.son,  $15.74;  1-23,  ."^liss  Chris.-:a  Katz,  $13.45; 
3-20,  Mr.s.  A.  K.  Gilbert,  $12.40;  11-25,  Benjamin  Xew,  $14.80;  3-21.  J.  A.  Vanderbelt, 
$3.00;  8-22.  William  Noyes.  $13.45;  1.5-22,  Hugh  J.  O'Brien,  $12.84:  3-23,  Chas.  K.  Gib- 
son, $12.75;  12-14,  Henry  Kurtz,  $9.25;  8-21,  Chas.  Kaehler,  $0..5O;  .5-20,  Dr.  D.  S.  Goble, 
$15.80;  7-27,  Geo.  W.  Ottinger,  $7.00;  0-20,  Jos.  Yeruan,  $4.35;  14-15,  Ira  P.  Wetzel, 
$18.25:    (;-23.  W.  S.  Osborn.  $8.00;    1-25,  Theodore  Gilles.  $14.80:    7-15,  Samuel  Kelly, 


OFFICE     ROUTINE    AND    BOOKKEEPING.  143 

$11.40;  9-23,  A.  J.  Kinnomau,  $11.40;  5-3G,  E.  G.  Osgood,  $12.30;  8-25,  Cora  Walters, 
«10.60;  15-20,  Frank  Krauss,  $8.05,  5-22,  Wm.  B.  Knight,  $4.25;  .3-28,  Miss  Sadie  B. 
Koehler,  $14.75,  7-14,  A.  C.  Yates,  $10.12;  10-2o,  Wm.  Youug,  $3.25;  9-20,  S.  P.  Pattou, 
$4.50;  4-20,  L.  K.  Grainger,  $9.75;  14-21,  L.  L.  Leaver,  $11.40;  8-24,  Irving  A.  Penny, 
$4.50;  11-22,  Juo.  ZoU,  $7.15;  0-24,  Miss  Anna  K.  Seager,  $12.40;  0-19,  A.  Messinger, 
$13.25;  4-21,  Leopold  Eice,  $10.85. 

Glove  Department.  27-35,  Jno.  C.  McCarthy,  $9.25;  28-18,  Wm.  Sassaman,  $41.50; 
26-23,  Julius  Hanser,  $5.05;  27-22,  Samuel  Althoff,  $2.15;  32-17,  Miss  Mary  Ambler, 
$L85;  33-25,  Wm.  Henning,  $10.10;  31-34,  Richard  Smythe,  $2.25;  20-24,  Ed.  McCor- 
mick,  $13.85;  30-34,  Thos.  McElwain,  $14.25;  30-24,  Martin  Schneider,  $7.05;  31-20, 
Alonzo  Hicks,  $4.75;  25-31,  Juo.  H.  Alvey,  $5.40;  28-19,  Henry  Beaver,  $4.00;  20-31, 
Miss  Sadie  Harlan,  $6.50;  34-32,  Mrs.  W.  C.  Bostwick,  $5.20;  31-18,  Judson  Brown,  $2.50; 
28-27,  Wm.  lumaii,  $11.20;  35-33,  Jno.  Stalder,  $4.25;  33-24,  Miss  Ella  McMaster,  $4.05; 
34-33,  E.  A.  McMiekle,  $19.81;  32-28,  Miss  Anna  K.  Seager,  $8.25;  35-19,  Mrs.  M.  Jacobs, 
$7.60;  27-21,  Mrs.  Henry  Bader,  $7.50;  25-21,  C.  L.  Behrns,  $3.00;  30-20,  J.  A.  Joseph, 
$10.90;  29-18,  Walter  Shearer,  $8.50;  28-28,  E.  V.  Neal,  $9.35;  35-18,  Geo.  N.  Nash, 
$4.20;  20-33,  Edwin  Short,  $3.25;  25-32,  Wm.  Johnson,  $12.75;  30-23,  E.  S.  Collins, 
$6.80;  32-20,  P.  Cassidy,  $11.50;  27-29,  Miss  Chrissa  Katz,  $5.25;  33-26,  Hiram  Simpson, 
$3.15;  26-25,  Andrew  J.  Nellis,  $0.85;  28-31,  Benjamin  New,  $9.45;  3^-19,  Albert  Spill- 
man,  $4.00;  31-19,  Henry  Kurtz,  $4.25;  29-28,  Mrs.  Edwin  Dalton,  $11.75;  34-10,  C.  0. 
Dinwiddie,  $7.65;  29-20,  A.  J.  Kinnman,  $9.85;  27-32,  Paul  Steele,  $2.25;  31-23,  Mrs.  E. 
Nichols,  $10.55;  30-35,  William  Noyes,  $8.74;  25-22,  Walter  W.  Stern,  $4.75;  33-34, 
Frank  Krauss,  $10.55;  33-33,  C.  G.  Davis,  $9.40;  29-17,  W.  W.  Earnest,  $11.40;  25-30, 
Wm.  B.  Kniglit,  $9.45;  35-20,  Jno.  M.  Utz,  $13.25;  20-26,  Wm.  Vanderpool,  $3.15;  35-15, 
Geo.  Engert,  $13.25;  34-17,  E.  G.  Laird,  $3.50;  25-34,  L.  L.  Leaver,  $9.84;  32-32,  Jno. 
E.  Eberhard,  $12.34;  35-16,  J.  A.  Vanderbelt,  $4.75;  27-30,  W.  S.  Osborn,  $11.50;  34-18, 
E.  C.  Osgood,  $19.38;  25-23,  M.  C.  Parker,  $4.00;  31-25,  L-a  P.  Wetzel,  $10.15;  31-26, 
Gustav  Fisher,  $9.80;  33-23,  Mrs.  H.  H.  Martin,  $4.25;  31-33,  A.  Messinger,  $7.40;  33-27, 
Jno.  B.  Fowler,  $9.50;  25-35,  C.  C.  Waite,  $4.45;  30-25,  S.  P.  Patton,  $12.25;  35-17,  Miss 
Amie  Rathbun,  $18.50;  27-20,  Peter  M.  Ward,  $10.47;  34-20,  Mrs.  A.  K.  Gilbert,  $9.05; 
35-34,  Mrs.  G.  W.  Miner,  $4.25;  27-19,  Dr.  D.  S.  Goble,  $11.45;  29-19,  Jno.  V.  Eedmond, 
$12.81;  32-29,  Leopold  Eice,  $11.35;  25-29,  Jno.  ZoU,  $4.25;  32-18,  L.  V.  Maurer,  $0.85; 
28-29,  Valentine  Eess,  $2.25. 

Hat  Department.  51-28,  Juo.  C.  McCarthy,  $4.50;  58-30,  Wm.  Sassaman,  $0.50; 
50-21,  J.  W.  Harrison,  $3.50;  52-30,  Miss  Mary  Ambler,  $0.75;  50-24,  Jno.  H.  Alvey, 
$2.00;  51-20,  Alonzo  Hicks,  $4.50;  50-23,  Miss  Susan  Smythe,  $12.50;  53-15,  Mrs.  E.  Mc- 
Daniel,  $3.50;  59-25,  Ed.  McCormiek,  $8.45;  51-27,  Martin  Schneider,  $3.50;  56-29,  Miss 
Sadie  Harlan,  $12.25;  51-26,  Albert  A.  Borton,  $3.50;  50-30,  Geo.  P.  Bower,  $9.50;  57-29, 
Wm.  Johnson,  $5.50;  50-30,  Jno.  Stalder,  $14.75;  58-17,  Geo.  McFarlau,  $4.25;  00-23, 
Thos.  McElwain,  $13.15;  57-27,  Albert  E.  Shaw,  $12.50;  55-18,  Henry  Kasser,  $3.75; 
57-26,  C.  L.  Behrns,  $0.50;  59-21,  Miss  Maggie  Conway,  $27.80;  55-29,  Henry  Kurtz, 
$3.50;  59-23,  Hiram  Simpson,  $0.55;  51-17,  Burton  E.  McGnire,  $2.50;  58-29,  Miss  Ella 
McMaster,  $10.25;  57-28,  Albert  Spillman,  $2.50;  58-20,  Samuel  Kelly,  $5.75;  54-25, 
Henry  Cooper,  $9.75;  57-25,  Mrs.  Edwin  Dalton,  $19.70;  00-22,  A.  J.  Kinneman,  $4.50; 
53-17,  Paul  Steele,  $5.75;  53-28,  Geo.  N.  Nasli,  $6.50;  50-24,  Andrew  J.  Nellis,  $12.85; 
54-24,  Jno.  M.  Stone,  $7.03;  50-22,  Wm.  B.  Knight,  $11.50;  54-20,  C.  G.  Davis,  $12.75; 
50-20,  W.  W.  Earnest,  $17.00;  54-22,  Miss  Sadie  B.  Koehler,  $25.00:  00-25,  Jno.  M.  Utz, 


144  (iKKICK    kOUTINi;    AM)    BOOKKEEl'ING. 

IslO.oO;  .'lo-lT,  E(l;,'!ir  M.  Vail,  *lo.25;  58-18,  Martin  Nuwiiian,  *4."<!o;  tJO-V'-t,  Benjamin 
New.  ^UMi.'i;  39--J4,  \Vm.  Vanderponl,  |!l0.'25;  55-19,  L.  L.  Leaver,  ^4.05;  o'-i-M,  Solomon 
Erb.  *r.8o:  5i;-35,  Geo.  Eaton,  *2 1.80;  54-21,  A.  Messingcr,  iilO.OO;  51-18,  Jos.  Vernan, 
$13.30:  55-ir,.  William  Xoycs,  *3.r5:  5S-H>,  Hugh  J.  O'Brien,  ^5.35;  .50-25,  Ira  P.  Wetzel, 
*4.1(;;  50-33,  II.  E.  Eastwood,  *30.00;  5t;-3t;,  Jno.  E.  Eberliard,  ^3.35;  51-10.  Jno.  R. 
Fell,  *3.50;  50-33,  L.  V.  Manrer,  *5.35;  53-28,  Frank  M.  Wagner,  |il9.25:  54-33,  H.  J. 
Walker,  *15.4::  00-39,  Geo.  W.  Ottinger,  $3.35;  59-30,  M.  0.  Parker,  §3.50;  53-lG,  C.  C. 
Waite,  «!13.50:  OO-SO,  S.  P.  Paltou,  ?il3.15;  55-15,  Miss  Aniie  Ratlibun,  *19.75;  54-30, 
Wm.  Young,  *9.95;  50-31,  Jno.  B.  Fowler.  t!3.T5;  53-27,  Mrs.  A.  K.  Gilbert,  *G.20;  51-30, 
Chas.  K.  Gibson,  *4.50:  53-18,  Dr.  I).  S.  Goble,  U.r>0. 

DiiKSti  Goods  Depaktmicxt.  —  iS3-15,  C.  W.  Haniinond.  §45.35;  83-13,  Mrs.  Geo. 
Anderson,  §30.40;  t5-18,  Jos.  E.  ^IcGregor,  §44.50;  84-14,  Miss  Susan  Smythe, 
$38.40;  82-17,  Albert  E.  Shaw,  §18.56;  81-11,  Miss  Ella  McMaster,  §31.85;  83-17, 
llenrv  Beaver,  §10.45:  84-13,  Chas.  Harrington,  §30.35;  77-18,  Miss  Sadie  Harlan, 
§35.30;  80-34,  Mrs.  W.  C.  Bostwick,  §18.50;  75-30,  E.  V.  Neal,  §34.15;  80-10,  Frank  M. 
Wagner,  §47.75;  80-19,  Peter  M.  Ward,  §34.50;  70-18,  Hugh  J.  O'Brien,  §47.85;  80-17, 
Miss  Lillian  Belts,  §34.90;  83-10,  Miss  Chrissa  Katz,  §38.40;  79-19,  Miss  Sadie  B.  Koeh- 
ler,  §43.50;  75-17,  .Airs,  llcnrv  Bader,  §43.00;  83-19,  Mrs.  Maggie  O'Neill,  §49.25;  80-18, 
Cora  Walters,  §31.35:  83-14,  E.  G.  Osgood,  §43.35;  81-13,  r".  S.  Collin.^  §18.75;  77-19, 
Mrs.  11.  II.  Martin,  §34.15;  70-15,  Alfred  t^uinn,  §19.37;  83-18,  Mrs.  Jno.  R.  Cassel, 
§18.75;  83-34,  .Miss  Maggie  Conway,  §31.47;  77-17,  Miss  Amie  Rathbun,  §10.15;  76-17, 
Mrs.  Edwin  Dalton,  §38.40;  70-19,  Leopold  Rice,  §10.10;  79-14,  Chas.  Dodson,  §30.70; 
78-13.  Wni.  Young,  §4(t.35;  77-10,  Chas.  B.  Elliot,  §48.14:  79-10,  Jno.  Zoll.  §19.75. 

Clotijixc;  Depaut.mknt. — l(t7-ll,  Jno.  C.  McCarthy,  §05.00;  115-17,  J.  \\ .  Harrison, 
§22.20;  105-11,  Wm.  Sassaman,  §49.25;  105-12,  Samuel  Althoff,  §34.90;  117-16,  J.  G. 
Atkinson,  §94.80;  117-17,  Jno.  Stalder,  §35.00;  111-14,  Geo.  Heitz,  §35.75;  101-15, 
Mrs.  E.  McDaniel,  §31.25;  108-12,  Jos.  E.  McGregor,  §28.50;  101-14,  Wm.  Henning, 
§31.45:  113-10,  Hiram  Simpson,  §38.40:  114-11.  Jno.  H.  Alvey,  §17.60;  103-13,  Henry 
Beaver,  §33.50;  110-9,  Albert  Spillman,  §35.35:  110-9,  Jno.  M.  Stone,  §35.45;  107-17, 
Alonzo  Hicks,  §35.30;  111-13,  Samuel  Halderman,  §43.75;  110-17,  Andrew  J.  Nellis, 
§95.75;  113-13,  Benjamin  New,  §91.35;  108-10,  Thos.  Hawkins,  §14.25;  117-12,  J.  J. 
Sweeney,  §43.50;  110-10,  Judson  Brown,  $21.75;  105-13,  Mrs.  Henry  Bader,  §19.25; 
110-10,  Fred.  W.  Townsend.  §10.00;  113-17,  J.  A.  Joseph,  §45.50;  101-10,  3Irs.  E.  Nich- 
ols, §78.40:  113-14.  William  Noyes,  §105.35;  108-11,  Henry  Kasser,  §38.25;  110-8,  Wm. 
Vandcrpool,  §34.18;  114-10,  C.L.  Behrns,  §37.75;  108-13,  Mrs.  Jno.  R.  Cassel,  §37.75; 
101-10,  Ira  P.  Wetzel,  §35.50;  103-11,  Henry  Kurtz,  §31.75;  104-13,  P:dward  O'Connor, 
§135.50;  109-15,  E.  G.  Osgood,  §103.15:  114-13,  M.  C.  Parker,  §45.00;  113-13,  A.  J.  Kin- 
neman,  §19-75;  111-15,  Frank  M.Wagner,  §35.50;  109-17,  P.  Cassidy,  §47.83;  110-10, 
Ralph  E.  Cooke,  §37.40;  103-14.  H.  J.  Walker,  §38.75;  109-14,  L.  L.  Leaver,  §47.80; 
100-17,  Mrs.  H.  H.  Martin,  §14.85;  103-13,  S.  P.  Patton,  §17.50;  107-10,  Irving  A.  Penny, 
§11.40;  104-13,  Mrs.  G.  W.  Miner,  §45.75;  103-11,  Peter  M.  Ward,  §35.35;  113-15,  Henry 
Cooper,  §45.55;  101-17,  li.  E.  Eastwood,  §21.75;  104-15,  W.  W.  Watkins,  §40.00;  100-14, 
Aug.  :Morely,  §33.75;  100-15,  Leopold  Rice,  §14.35;  101-11.  Wm.  Young,  §10.50;  103-10, 
Jno.  B.  Fowler,  §43.75;  104-14,  Jno.  E.  Eberhard,  §33.43;  100-10,  Jacob  Froehlich,  §75.00. 

Foot  the  columns  of  the  Abstract  of  Time  Sales  sheets.  Verify  your  footings  and  enter 
them    in  the   Summary  of   Daily  Sales  as  previously  instructed.     Prove   the  totals  of  the 


OFFICE    ROUTINE    AND    BOOKKEEPINO.  145 

department  columns  with  the  sales  ledger  totals,  after  which  assemble  the  Abstract  of  Time 
Sales  sheets  and  lay  them  aside  as  previously  instructed. 

Cash  Sales.  Tiie  cash  sales  are  listed  below.  Enter  them  on  the  Abstract  of  Cash 
Sales  sheets  as  previously  instructed.  Do  not  fail  to  record  tiie  clerk  and  sales  ticket  num- 
bers for  each  sale. 

Shok  Department.— 5-17.  nS-SO;  2-17,  $7.<i5;  •1-10,  $4.75;  13-19,  $4.50;  8-17,  ^2().r)0; 
14-17.  Silt>.80;  11-18,  $14.75:  7-20,  |i3.25;  15-17,  «il7.40;  1-2G,  *t.75;  10-20,  $7.05;  12-25, 
$11.40;  0-10,110.50;  15-25,118.25;  3-14,113.51;  11-lt),  $6.75;  4-34,  $4.85;  8.20,  $18.70; 
9-17,  $9.75;  15-24,811.40;  1-lS,  $10.00;  12-19,  $14.81;  4-14,  $25.00;  10-13,  $23.50;  2-10, 
$4.75;  15-19,  $15.40;  10-25,  $8.50;  9-18,  $4.25;  7-10,  $12.75;  12-18,  $20.50;  8-18,  $20.40; 
13-22,  $24.50;  3-10,  $7.25;  14-25,  $23.50;  10-10,  $11.10;  1.5-20,  $8.90;  1-21,  $13.50;  9-37, 
$7.25;  11-20,  $14.85;  2-30,  $13.00;  7-17,  $25.50;  11-27,  $10.80;  14-19,  $4.75;  5-34,  $0.. 50; 
11-33,  $4.35;  4-17,  $8.45;  2-18,  $15.85;  9-21,  $4.76;  7-25,  $21.80;  6-17,  $7.65;  12-10, 
$3.50;  7-31,  $14.76;  11-30,  $11.80;  3-33,  $33.50;  12-32,  $13.45;  8-19,  $11.60;  6-35,  $4.35; 
13-18,  $10.80;  9-15,  $14.30;  13-35,  $3.50;  3-13,  $4.11;  14-16,  $19.35;  10-34,  $31.30;  9-10, 
$4.15;  15-18,  $3.49;  7-13,  $18.40;  11-31,  $9.85;  10-17,  $4.50;  15-33,  $12.45;  1-19,  $10.00; 
3-25,  $4.00;  13-17,  $3.00;  9-34,  $9.75;  12-30,  $13.40;  3-21,  $9.28;  3-32,  $4.50;  3-17, 
$24.80;  14-30,  $13.75;  8-30,  $31.50;  4-33,  $9.87;  3-37,  $3.25;  9-25,  $12.15;  1-27,  $4.75; 
14-24.  $18.45;  5-23,  $16.90;  15-27,  $3.75;  14-20,  $31.38;  0-18,  $15.35;  4-25,  $13.25;  2-20, 
$6.15;  5-10,  $11.05;  8-14,  $9.35;  12-24,  $0.40;  13-20,  $7.38;  14-18,  $21.50;  1-33,  $13.35; 
15-10,  $10.10;  10-15,  $3.50;  9-30,  $8.40;  5-35,  $4.75;  7-19,  $15.25;  3-20,  $9.37;  11-17, 
$13.85;  8-15,  $14.75;  4-26,  $12.00;  3-15,  $9.95;  0-15,  $4.87;  13-31,  $16.40;  11-34,  $9.13; 
7-30,-$13.45;  10-14,  $4.95;  13-15,  $11.15;  15-15,  $15.50;  4-15,  $18.35;  1-20,  $11.-50; 
12-20,  $15.35;  9-19,  $13.55;  8-10,  $21.25;  11-16,  $3.50;  7-18,  $4.75;  13-21,  $18.40;  4-37, 
$9.45;  6-14,  $30.35. 

Glove  Department.— 36-31,  $4.50;  25-18,  $10.25;  28-25,  $7.80;  29-23,  $14.80;  27-31, 
$30-35;  26-28,  $7.60;  39-32,  $11.48;  34-20,  $9.81;  27-38,  $7.35;  34-39,  $6.35;  33-21, 
$4.20;  27-24,  $19.30;  35-22,  $12.45;  33-30,  $16.20;  31-29,  $11.15;  26-32,  $7.35;  29-30, 
$24.50;  30-19,  $5.75;  30-31,  $4.'37;  20-29,  $13.05;  28-32,  $6.85;  28-23,  $15.05;  27-25, 
$14.25;  32-37,  $14.75;  35-33,  $18.45;  30-20,  $0.50;  31-31,  $11.50;  34-24,  $24.75;  25-26, 
$4.50;  35-24,  $14.35;  33-23,  $8.25;  30-32,  $8.56;  29-36,  $3.25;  30-33,  $23.15;  34-30, 
$4. 
32- 
29- 
35-3J 

33-30,  $16.40;  30-17,  $4.35;  33-39,  $9.00;  30-38,  $11.50;  31-33,  $13.40;  34-27,  $18.00; 
27-23,  $4.75;  34-28,  $3.35;  33-33,  $18.45;  28-20,  $15.25;  35-30,  $4.35;  29-27,  $6.75; 
34^25,  $9.50;  32-33,  $11.50;  20-27,  $10.12;  29-29,  $4.03;  28-21,  $15.25;  29-34,  $12.80; 
32-31,  $4.60;  31-34,  $18.45;  29-16,  $11.03;  37-33,  $25.50;  32-30,  $4.75;  38-30,  $12.40; 
33-28,  $3.60;  32-33,  $6.40;  31-37,  $19.60;  27-34,  $20.10;  26-18,  $4.50;  33-18,  $24.50; 
25-19,  $18.20;  33-31,  $12.40;  33-35,  $4.25;  3.3-32,  $10.12;  27-27,  $4.60;  28-24,  $4.75; 
30-22,  $3.50;    25-20,  $12.40;   35-28,   $11.15;   33-19,   $4.85;    39-24,    $7.03;   34-21,  $8.45; 


25-27,  $15.50. 


140 


Ol-I-ICK    KOUTINK    AND     Bt  m  iK  K  1.1  11  .NG. 


Hat  Dkpaktmk.nt.— 50--21,  *0.::J0;    54---jy,  *15.00;  5()-22,  *6.75;  51-25,  *ii. 
*G.83;    50-30,    *a.85;    57-24,    $8.54;    59-19,    |!14.85;    52-24,    $7.85;   59-18,   *4. 
110.70;  54-19,  84.75;   54-27,  S12.85;  52-25,  8:21.10;   56-18,  «!lO.SO;  53-29,  §12. 
*5.25;    57-23,  *(;.40;    52-29,  *9..50;    50-19,  §12.80;  50-20,  §15.75;  52-10,  619.! 
§4.00;    00-28.  §8.75;   54-28,  §19.70;   59-27,   §4.75;   50-28,  §9.45;   55-20,  §12.i 
§10.05;   58-21,  §7.80;   51-29,   §4.50;   58-22,   §3.25;   55-21,  §4.04;   00-20,  §21.^ 
§11.00;   53-20,  §15.50;  00-27,  §9.80;   58-23,  §11.40;  50-29,  §10.25;  54-20,  §12. 
§0.45;    58-24,  §4.75;   53-21,   §7.80;   54-31,   §3.25;    00-17,   §10.35;    52-23,  §12. 
§4.50;    00-10,   §3.50;   50-10,   §31.25;  59-17,   §6.70;   50-10,  §18.50;   54-17,  §7. 
§14.75;    57-15,  §0.55;    60-15,   §14.85;    59-16,  §16.25;    50-17,  §4.80;    50-28,  §3. 
§7.25;    52-32,    §4.10;    54-18,    §0.25;    57-16,   §8.47;    50-17,    §16.80;    52-17,    §4. 
§12.40;   57-22,  §5.45;   59-15,   §31.25;   53-30,   §7.03;   57-17,  §9.85;   56-32,  §4. 
§18.45;  55-31,  §16.70;  50-18,   §9.40;  55-23,  §18.50;  58-25,  §14.75;  57-30,  §25. 
§4.16;  55-30,  §4.25;    .53-22,  §10.80;    60-31,   §11.40;    55-24,   §3.50;    00-20,   §10. 
§4.20;    60-21,  §5.20;   55-25,  §7.49;   58-31,   §19.75;   53-23,  §18.60;   50-31,  §4.' 
§8.75;   52-21,  §14.50;  00-18,  §3.50;  53-27,  §12.00;  55-28,  §11.75;   58-28,  §12. 
§0.15;   53-20,  §11.70;    58-27,  §18.40;  57-20,  §0.50;  55-20,  §12.30;  57-21,   §8. 
§10.40;    51-23,    §7.35;    52-18,  §12.00;  57-10,   §9.75;    53-25,    §8.05;    55-27,  §7. 
§11.45;  53-24,  §3.65;  52-19.  §14.85;  50-27,  §10.00. 


§44.84 
§54.75 
§14.80 
§68.48 
§19.85 
§15.75 
§14.50 
§28.40 
§10.50 
§31.50 
§10.00 
§20.40 
§95.10 
§12.50 
§19.10 
§12,85 


Dress   Goods   Depautmext. — 86-14,  §10.25;   84-23,   §14.55;   80-15, 
§11.08;  78-16,  §24.43;  83-23,  §40.75;  82-18,  §18.91;  8.5-22,  §10.25;  70-17,  §28. 

84-18,  §12.15;  77-22,  §10.00;  79-18,  §97.00;  78-17,  §14.55;  86-13,  §19. 

82-19,  §21.55;  84-15,  §19.25;  86-17,  §11.08;  84-19,  §16.45;  77-14,  §11. 

81-13,  §18.90;  80-18,  §11.50;  77-20,  §25.40;  78-20,  §11.21;  77-15,  §93. 

80-19,  §14.50;  84-17,  §84.75;  70-23,  §14.40;  80-20,  §15.40;  81-20,  §11. 

82-20,  §14.15;  70-24,  §30.85;  84-10,  §8.40;  83-20,  §17.00;  79-24,  §13. 

79-12,  §10.00;  80-22,  §12.40;  79-13,  §10.50;  82-22,  §21.75;  78-21,  §25. 

78-14,  §8.75;  79-21,  §53.50;  77-21,  §12.00;  78-15,  §11.75:  80-21:  §12. 

84-21,  §45.00;  83-12,  §85.25;  85-17,  §10.25;  8-3-21,  §14.75;  76-21,  §45. 

81-16,  §18.40;  85-21,  49-50;  85-19,  §12.00;  83-13,  §17.04;  86-21,  §11. 

81-22,  §12.45;  77-11,  §24.85;  75-21,  §27.45;  80-16,  §16.84;  86-20,  §7 

80-22,  §20.50;  77-12,  §44.85;  75-19,  §12.80;  81-15,  §10.20;  80-15,  §11. 

85-20,  §15.05;  78-23,  §12.84;  70-12,  §37.75;  80-14,  §40.45;  79-22,  §34. 

75-22,  §4.00;  70-22,  §11.85;  81-23,  §19.45;  76-13,  §31.15;  83-22,  §24. 

85-13,  §45.90;  81-21,  §11.63;  81-17,  §19.45;  83-16,  §10.84;  85-14,  §93. 

82-21,  §35.34;  75-15,  §60.50;  85-15,  §18.36;  81-10,  §0.71;  85-16,  §14. 

76-15,  §85.75;  83-14,  §64.85;  76-16,  §10.63;  83-15,  §18.90;  70-14,  §00. 
§8.75;  75-16,  §16.40. 

Clothing  Department.— 110-15,  §25.00;  115-10,  §45.75;  119-16,  §49.20;  102-16, 
§24.75;  11.5-11,  §50.20;  101-9,  §18.50;  10-3-17,  §12.75;  119-14,  §15.40;  100-9,  §24.90; 
115-12,  §75.75;  100-9,  §84.73;  103-9,  §10.85;  113-12,  §24.70;  114-10,  §18.46;  109-10, 
§19.15;  113-13,  §17.45;  100-10,  $8.00;  104-8,  §10.25;  106-10,  §14.50;  103-10,  §29.50; 
104-9,  §11.50;  100-11,  §18.25;  111-16,  §4.50;  100-11,  §15.00;  113-14,  §18.45;  100-11, 
§11.90;  115-13,  §20.15;  113-15,  §31.50;  119-12,  §18.75;  106-12,  §24.25;  112-10,  §17.88; 
104-10,  §4.5.00;  112-11,  §10.95;  113-16,  §38.30;  106-13,  §10.35;  115-14,  §48.15;  106-14, 
116.75:  104-11.   §00.35;  115-16,  §11.45;  116-13,  §24.80;    106-15,  §17.60:    115-15,   §18.00; 


.45; 

66-20, 

15; 

50-19, 

.50; 

51-21, 

80; 

5(>-27, 

50; 

53-19, 

40; 

55-22, 

.50; 

52-31, 

45; 

51-24, 

65; 

52-22, 

.15; 

51-22, 

25; 

59-28, 

63; 

57-18, 

.50; 

58-26, 

.85; 

59-30, 

75; 

58-32, 

.30; 

52-20, 

.75; 

50-26, 

70; 

60-19, 

.25; 

80-23, 

.25; 

79-23, 

.05; 

77-13, 

.60; 

76-20, 

.84; 

79-20, 

.10; 

81-14, 

.45; 

84-20, 

.00; 

75-13; 

.30; 

75-14, 

.75; 

85-18, 

.40; 

85-12, 

.63; 

84-22, 

.65; 

75-23, 

.75; 

78-22, 

.80; 

80-13, 

.80; 

81-18, 

44; 

78-18, 

.90; 

78-19. 

OFFICE    ROUTINE    AND     HOOKKEEPING.  147 

106-16,  $45.25;  108-15,  $12.40;  113-10,  $9.50;  108.14,  $10.00;  110-12,  $8.00;  102-15,118.45; 
118-13,  $19.00;  118-10,  $23.85;  105-15,  $17.63;  118-14,  $10.50;  101-12,  $26.80;  118-15, 
$46.20;  110-15,  $9.40;  107-12,  $20.15;  113-11,  $19.45;  107-13,  $29.50;  114-15,  $18.24; 
101-13,  $28.40;  114-14,  S19.25;  107-14,  $11.50;  114-13,  $10.85;  111-10,  $35.50;  117-9, 
$45.75;  107-15,  $22.70;  111-11,  $40.20;  107-10,  $45.25;  111-12,  $18.50;  117-10,  $17.63; 
100-12,  $15.25;  100-16,  $20.40;  119-9,  $18.95;  117-11,  $14.30;  118-10,  $10.10;  100-13, 
$19.50;  117-13,  $71.81;  116-16,  $8.00;  117-14,  $16.80;  117-15,  $9.15;  109-12,  $12.74; 
116-14,  $38.30;  119-10,  $22.75;  110-15,  $35.00;  109-13,  $17.75;  118-9,  $10.95;  110-12, 
$19.45;  105-10,  $11.65;  118-11,  $18.00;  110-11,  $48.75;  102-14,  $29.50;  103-15,  $10.85; 
113-9,  $45.75;  118-12,  $46.20;  110-13,  $19.50;  105-14,  $16.80;  103-16,  $22.75;  110-14, 
$35.00;  110-11,  $17.75;  119-13,  $12.50;  102-13,  $85.50;  102-12,  $60.15;  119-11,  $16.40. 
Foot  the  money  colmiiiis  of  the  Abstract  of  Cash  Sales  sheets.     \"erify  your  addition. 

Clerks'  Daily  Sales.  Tlie  daily  footings  of  the  Clcrl<s"  .Summary  Slieets  are  given 
below.     Enter  tlieni  as  previously  instructed. 

Clerk  1,  $139.10;  2,  $113.57;  3,  $178.48;  4,  $109.67;  5,  $112.95;  6,  $122.77;  7,  $211.03; 
8,  $197.40;  9,  $116.59;  10,  $147.25;  11,  $120.47;  12,  $158.32;  13,  $137.33;  14,  $198.18;  15, 
$147.97;  25,  $154.04;  26,  $121.12;  27,  $186.72;  28,  $189.35;  29,  $225.27;  30,  $164.35;  31, 
$167.22;  32,  $151.94;  33,  $171.92;  34,  $218.46;  35,  $253.08;  50,  $172.41;  51,  $79.00;  52, 
$190.86;  53,  $157.63;  54,  $175.50;  55,  $101.58;  56,  $172.01;  57,  $166.91;  58,  $141.56;  59, 
$200.70;  60,  $173.34;  75,  $300.30;  70,  $466.18;  77,  $401.83;  78,  $205.48;  79,  $470.05;  80, 
$212.19;  81,  $229.84;  82,  $276.56;  83,  $417.30;  84,  $291.85;  85,  $312.15;  86,  $202.49;  100, 
$129.40;  101,  $271.55;  102,  $287.35;  10.3,  $187.20;  104,  $401.78;  105,  $139.48;  106,  $189.25; 

107,  $230.80;   108,  $121.15;   109,  $422.15;  110,  $320.69-,  111,  $198.70;  112,  $319.03;  11.3, 
$250.60;  114,  $157.15;  115,  $291.65;  116,  $213.03;  117,  $338.74;  118,  $184.80;  119,  $178.95. 

Find  the  footings  of  each  merchandise  department  and  enter  them  in  red  ink.  Next 
find  the  total  of  the  footings. 

Clerks'  Time.  Tlie  time  of  tlie  clerks  is  as  follows.  Clerks  numbers  1,  2,  3,  4,  5,  6,  7, 
8,  9,  10,  11,  12,  13,  14,  15,  25,  26,  27,  28,  29,  30,  31,  32,  33,  34,  35,  50,  51,  52,  53,  54,  55, 
57,  58,  59,  60,  75,  76,  78,  79,  80,  81,  82,  S3,  84,  85,  100,  101,  102,  103,  104,  105,  100,  107, 

108,  109,  110,  111,  112,  113,  114,  115,  116,  117,  118  have  worked  full  time.     Numbers  56 
and  77  have  worked  ^  day  each.     Numbers  86  and  119  have  worked  f  of  a  day  each. 

Ascertain  the  total  time  of  each  clerk  for  the  week  and  extend  it  in  the  Total  Time 
column.  Next  ascertain  the  amount  of  wages  due  each  clerk.  The  managers  of  the  depart- 
ments are  paid  for  a  full  week;  the  other  clerks  are  paid  for  their  actual  time.  Be  very 
careful  in  making  tlie  calculations  and  extensions.  Find  the  footings  of  each  department 
and  enter  tJaeni  in  red  ink.  Next  find  tlie  total  amount  of  the  Pay  Roll  by  adding  the  red 
ink  footings. 

Next  ascertain  the  amount  of  change  required  of  each  denomination  as  explained  in  the 
paragraph  entitled  "How  to  Pay  Off."  The  total  of  the  various  denominations  should 
agree  with  the  total  of  the  Pay  Roll.     If  it  does  not,  go  over  your  work  and  locate  the  error. 

Cashier's  Statements.  The  cash  receipts  (other  than  cash  sales)  and  imyments  are 
listed  below.     Enter  them  on  the  proj^er  detailed  statement  blanks. 

Receipts. — Saks  Ledgers.  J.  W.  Harrison,  $17.95;  Miss  Pauline  Sale,  $18.00;  Samutd 
Althoff,  $21.20;  Jno.  C.  McCarthy,  $50.00;  Miss  Mary  Ambler,  $20.30;  Richard  Smythe, 
$7.25;  Geo.  Heitz,  $23.15;  "Wm. 'Henning,  $22.90;  Paul  Scull,  $26.95;  J.  G.  Atkinson, 
$33.00;  Mrs.  E.  McDaniel,  $13.04;  Geo.  McFarlan,  $53.75;  Henry  Beaver,  $12.30:  Martin 


148  Dl-KICK    ROUTINE    AND    BOOKKEEl'ING. 

SchneiikM-,  ?-.';i.lU:  Jtoiiaiil  M.  lleplor.  ?il2.';,j;  AV.  E.  Scliermerliorii.  |i2-i.20:  Dr.  C.  M. 
Brucker,  l^.'r^.nO;  Aiulrcw  Miliitvif,  ^52.0");  Josepli  E.  McGregor,  $22.80;  Mrs.  Henry 
B:uler,  «;;j6.2o;  Albert  £.  Sliaw,  $2'.).  12;  Alonzo  Hicks,  «!25.00;  Edwin  Short,  138.00: 
Chirence  W.  Cami)bel].  *25.00;  Burton  E.  McGuirc,  $19.25;  Paul  Snyder,  $46.80;  B.  W. 
Hayden.  |;2li.00;  Frank  Casper,  «:22.20;  Mrs.  Kate  McKenna,  ^^105.00;  Jno.  M.  McKinley. 
$75. (10;  1'.  Cassidy,  «!ir.2:.;  Mrs.  J.  G.  Hinolf,  ^45.50;  Ralj)!!  E.  Cook,  S25.00;  Mrs.  T.  P. 
Me.Menaniin.  .i^US.yC;  A.  K.  Steplienson,  §17.00;  Mrs.  Geo.  Hyde,  $27.00;  Walter  W.  Stern, 
$75.43:  Henry  Cooper,  $50.00:  E.  V.  Neal,  $41.35;  Wm.  Inman,  810.95;  Jno.  M.  Stone, 
$24.15;  Mr.<.  Edwin  Dalton.  $25.50;  Muss  Mabel  Keilson,  $152.80:  Andrew  J.  Nellis,  $85.50: 
Miss  Lulu  Tate,  $18.45;  Mrs.  M.  Jacobs,  $21.70;  Frank  W.  Taylor,  $11.01;  J.  A.  Joseph, 
$44.85;  Morris  Thatciier,  $100.00;  Geo.  W.  Jones,  $11.15;  C.  0.  Dinwiddie,  $00.05;  A.  B. 
Jennings.  $24.85;  Martin  Xewman,  $50.45;  C.  G.  Davi.s,  $20.94;  Miss  Josie  Nicolay,  $27.60; 
Solomon  Erb,  $58.00;  Harvey  Xi.xon,  $19.85;  AValler  Kane,  $12.65;  Fred  W.  Townsend, 
$17.25;  Jno.  Noble,  $55.25;  Geo.  Engert,  $25.00;  Wm.  Underwood,  $32.75;  J.  E.  M. 
Keller.  $19.90;  Edgar  ,^[.  Vail.  $30.50;  H.  E.  Eastwood,  $27.04;  William  Nye,  $100.00; 
I^Irs.  Wm.  Emery,  $20.00;  J.  A.  Vanderbelt,  $25.00;  Henry  Kurtz,  $18.40;  Adam  Vogel, 
$24.50;  Jno.  E.  Eberbard,  $38.87;  Edward  O'Connor,  $19.60;  Miss  Euphemia  Faucctt, 
$12.00;  Ira  P.  Wetzel,  $3.5.25;  Cha.s.  Kaelilcr,  $20.50;  Henry  Kcmjif,  $24.20;  Frank  M. 
AVagncr,  $14.02;  Geo.  W.  Ottinger,  $100.04;  Jno.  K.  Fell,  $21.65;  H.  J.  Walker,  $50.00; 
Lawrence  Kiefer,  $27.00;  AVm.  Kitchen,  $31.65;  Peter  M.  Ward,  $11.75;  Miss.  M.  E.  Frost, 
S35.40;  Allen  H.  Oliver,  $10.00;  E.  G.  Osgood,  $125.00;  Jno.  B.  Fowler,  $20.00;  AV.  W. 
Walkins,  $20.00;  Mi.ss  Sarah  Keim.  $41.23;  C.  'SI.  Palmer,  $30.90;  Albert  Ginglebach, 
$58.05;  H.  H.  Watterson,  $14.95;  Frank  Krauss,  $80.40;  A.  C.  Yates,  S23.60;  Jayson 
Rummel,  $15.00;  Mrs.  A.  K.  Gilbert.  $38.25;  T).  E.  Parsons,  $18.40;  Chiles.  K.  Gibson, 
$15.00;  S.  P.  Palton,  $35.00;  K.  G.  Laird,  $75.50;  Alfred  Quinn,  $25.20;  Wm.  Young, 
$45.00;  Chas.  Lake,  $15.00;  Tlieo.  Gilles,  $9.45;  Miss  Amie  Rathbun,  $14.25;  Geo.  W. 
Martin,  $31.85;  Frank  Zimmer,  $20.00;  Geo.  E.  Munson,  $25.95;  Jno.  E.  Ziegler,  $30.15; 
C.  H.  Remington,  $30.90;  L.  K.  Grainger,  $30.05;  L.  Y.  jMaurer,  $03.05;  Herman  Zumm, 
$10.70;  Valentine  Ress,  $45.25. 

Pay.mkxts. — General  Ledger.  On  a  Payments-General  Ledger  sheet  enter  the  amount 
of  the  wages  for  each  dejiartment  as  shown  by  the  Pay  Roll.  Be  sure  to  charge  each  sepa- 
rate de])artment  account  with  the  wages  paid  for  its  account. 

Purchase  Ledger.  On  a  Paynunts-Purehase  Ledger  sheet  enter  all  accounts  that  are  to 
be  paid  to-day  to  be  entitled  to  a  discount.     ^lake  the  proper  record  of  the  discount. 

Find  the  footings  of  all  tlie  statements  and  enter  them  on  the  Cashier's  Abstract  State- 
ment.    Have  yon  included  the  amount  of  cash  sales?     Find  the  balance  of  cash  on  hand. 

As  General  Bookkeeper  you  will  now  verify  the  work  of  the  cashier.  Enter  the  items 
on  the  Cashier's  Abstract  Statement  in  the  Abstract  Cash  Account.  Carefully  lay  aside  the 
statements,  but  do  not  file  them,  tmlil  the  items  have  been  jiosted  to  tlie  iirojjer  ledgers. 

Enter  the  footings  of  the  Abstract  of  Casli  Sales  sheets  in  the  Sununary  of  Daily  Sales, 
and  ascertain  the  total  cash  sales.  Compare  it  witli  the  cash  sales  item  on  the  Casiiier's 
Abstract  Statement.  Foot  the  deitartmenl  columns  of  the  Summary  of  Daily  Sales  in  red 
ink.  Compare  the  footings  with  the  footings  of  the  Clerks'  Daily  Sales  record.  H  found  to 
agree  place  the  Abstract  of  Time  Sales  sheets  in  the  projier  envelopes  for  the  Sales  Book- 
keejH'rs.  If  you  are  unable  to  make  the  footings  agree,  report  the  discrepancy  to  tlie 
teacher,  who  will  advise  you  liow  to  iiroceed  to  locate  the  error. 


OFFICE    ROUTINE    AND     I'.OOKKEEl'INC;.  149' 

Posting.  Post  to  the  General  and  Purcliase  Ledgers  as  iireviously  instructed.  15e  sure 
to  post  the  totals  of  the  Sales  Ledgers  from  the  Summary  of  Daily  Sales  to  the  proper 
accounts  in  the  General  Ledger.  Check  over  the  posting.  File  all  documents  in  the  proper 
receptacles. 

Present  books  and  filing  envelopes  to  the  teacher  for  inspection. 

Mr.  Abraham  Levy,  one  of  the  jiartners,  died  suddenly  to-day.  As  a  death  causes  a 
dissolution  of  the  partnership,  the  business  can  not  be  continued  until  nuitters  are  adjusted. 
Airs.  Sarah  Levy,  his  sole  heir,  has  consented  to  sell  the  interest  of  lier  late  husband  to  the 
surviving  partners  at  a  discount  of  five  per  cent,  of  inventory  value.  It  will  be  necessary 
to  close  the  books  to  ascertain  tiie  deceased  ])artner's  i^iterest.  Preparatory  to  doing  so  an 
account  of  stock  is  to  be  taken.  Arningenients  have  been  made  whereby  some  of  the  clerks 
have  agreed  to  take  account  of  stock  during  tlie  holidays  (Fourtli  of  July  and  Sunday)  so 
that  tlie  business  may  be  continued  without  interruption  on  Monday.  These  clerks  are  to 
receive  ])ay  for  double  time,  which  will  be  handed  in  and  recorded  on  ^londay. 

Note. — The  five  per  ceut.  discount  from  the  deceased  partner's  interest  is  intended  to  pay  for  the  time 
and  trouble  involved  in  taking  an  inventory  and  closing  the  books,  to  ascertain  liis  interest. 

Monday,  July  G,  1S9-. 

Purcliases.     Record  tlie  purchases  listed  below  us  previously  instructed. 

Clothing  Department. — Kleinhans  &  Simnionson,  July  2,  2/.5,  net  30,  |08*-'.4-^,' 
Streng  &  Thalheimer,  July  2,  3/6,  net  GO,  $792.45. 

Hat  Departmext.— H.  H.  Hendricks  Co.,  July  3,  2/5,  net  20,  $742.98;  Wm.  Enderlm 
&  Co.,  July  1,  2/5,  net  30,  $382.40. 

Dress  Goods  Department.— Cahart,  Meyers  &  Co.,  July  1,  3/10,  net  30,  $1229.2G; 
Samuel  Sloane  &  Co.,  July  1,  3/10,  net  30,  $872.93;  Harry  Whitehead  &  Son,  July  2,  2/10, 
net  30,  $1222.80;  Dobson  &  Graham,  July  2,  3/10,  net  GO,  $1392.19. 

Credit  Sales.     Record  the  credit  sales  listed  below  as  previously  instructed. 

Shoe  Department.— 14-28,  Miss  Susan  Smytlte,  $10.34;  1-28,  J.  G.  Atkinson,  $7G.40; 
13-29,  Frank  R.  Heath,  $7.45;  8-28,  Robt.  D.  McCoy,  $20.25;  9-38,  Ed.  McCormick, 
$19.40;  6-27,  Jno.  Hess,  $13.75;  9-28,  Mrs.  Emma  Adams,  $12.80;  12-31,  Mrs.  J.  G. 
Hinolf,  $15.50;  2-34,  E.  J.  McLain,  $14.60;  10-37,  Peter  McFetters,  $12.37;  11-37,  Wal- 
ter Hallowell,  $12.50;  10-36,  Geo.  P.  Bower,  $14.60;  10-32,  Geo.  N.  Smith,  $4.75;  14-38, 
Paul  Scull,  $10.15;  6-28,  W.  E.  Schermerhorn,  $12.50;  2-33,  George  Bauer,  $9.00;  5-28, 
Miss  Sadie  Harlan,  $5.00;  3-36,  Mrs.  S.  S.  Xef[,  $12.25;  13-31,  Chas.  Oakley,  $4.50;  14-29, 
Edward  Jessup,  $12.50;  1-33,  AValter  Kane,  $6.25;  9-36,  .^Irs.  W.  C.  Bostwick,  $7.40; 
13-28,  Miss  Frances  M.  Schreier,  $6.25;  10-33,  Jno.  M.  Small,  $4.20;  7-37,  Judson  Brown, 
$12.00;  12-30,  Henry  Kasser,  $9.25;  6-37,  Mrs.  Maggie  O'Neill,  $4.50;  4-38,  C.  M.  Palmer, 
$9.25;  6-38,  Jno.  R.  Kennedy,  $12.80;  3-35,  Albert  A.  Borton,  $9.50;  7-35,  Albert  Spare, 
$9.50;  11-36,  Benjamin  Spring,  $5.45;  13-30,  Mrs.  T.  F.  Campbell,  $10.50;  8-29,  Mrs.  A. 
S.  Klein,  $11.48;  14-30,  Frank  W.  Pago,  $11.60;  2-35,  Silas  Lapham,  $6.25;  1-37,  Frank 
Casper,  $8.50;  12-28,  Miss  Maggie  Conway,  $9.50;  1-32,  J.  J.  Sweeney,  $11.70;  12-29, 
Miss  Lulu  Tate,  $6.25;  11-38,  Wm.  Dobbins,  $19.75;  3-37,  Geo.  W.  Martin,  $7.75;  1.5-28, 
Jno.  V.  Redmond,  $14.90;  10-35,  M.  M.  Malioney,  $12.85;  8-27,  Mrs.  Edwin  Dalton,  $6.70; 
5-29,  Benton  Thomas,  $3.50;  3-38,  Jno.  M.  Utz,  $19.81;  15-39,  F.  J.  Earl,  $7.80;  6-36, 
Mrs.  Wm.  Emery,  $27.65;  9-37,  Mrs.  Lottie  Mitchell,  $12.65;  7-38,  Jayson  liununel.  $8.75; 


15U  OFFICE    ROUTINE    AND    BUOKKEEl'ING. 

15-29.  Mrs.  \Vm.  M.  Fniiitz.  >^9.7o;  2-3C,  Frank  Vick,  «!l4.25:  10-34,  Harvey  Vincent, 
ii7.G-t;  12-27,  .laco'ij  Kroulilic-li,  *12.S5:  C-2C,  Aug.  Mordy,  ij;U.80;  4-3G,  Miss  M.  E.  Frost, 
*7.40;  8-30,  C.  C.  Waite,  *8.40;  9-29,  Mrs.  Emma  Wallace,  14.65;  1-39,  Albert  Gingle- 
bach,  ^9.40;  7-3C,  W.  W.  Watkiiis,  $11.00;  10-38,  Walter  Reynolds,  $12.25;  5-38,  A.  A. 
Weaver,  $4.25:  9-39,  Frank  C.  Glasser,  $9.40;  5-27,  L.  V.  Maurer,  $10.50;  4-37,  Valen- 
tine Kess,  $19.24:  8-40,  Jos.  A.  Webster,  $9.30. 

Glove  Depautmknt.— 35-42,  Miss  Susan  Sniythe,  $4.50;  30-48,  Robt.  D.  McCoy, 
$14.75;  211-48,  Frank  R.  Heatli,  $9.(iO:  25-3G,  Mrs.  Geo.  Anderson,  $0.20;  28-48,  Mrs. 
Emma  Adams.  $0.00;  33-35,  C.  W.  Hammond,  $4.25;  2G-47,  Edwin  McKenzie,  $11.15; 
2G-4C,  (Jeo.  X.  Smith,  $5.25:  25-49,  Paul  Scull,  $4.75;  33-3G.  E.  J.  McLain,  $10.85; 
31-30,  Miss  Mamie  IMoNeill,  $8.35;  2G-39,  Alonzo  Hicks,  $3.60;  31-37,  Geo.  P.  Bower, 
$0.40;  32-30,  Jno.  Hess,  $9.50;  28-46,  Peter  McFetters.  $4.75;  34-30,  Frank  Xaylor,  $7.05: 
35-30,  Miss  Frances  M.  Schreier,  $4.50;  25-1,  Jno.  M.  Small,  $3.45;  31-46,  Mrs.  S.  S, 
Xeff,  $14.36;  33-46,  Chas.  Harrington,  $9.84;  32-45,  Miss  Lillian  Betts,  $3.25;  27-36,  Dr, 
C.  M.  Brucker,  $3.50;  29-45,  Samuel  Halderman,  $4.85;  33-45,  J[rs.  E.  Xicliols.  $9.80; 
27-37,  Albert  Si)are,  $4.64;  31-50,  Benjamin  Spring,  $11.05;  28-45,  Charles  Xorthrop. 
$7.47;  34-46.  Chas.  Oakley,  $4.21;  32-47,  Walter  Hallowell,  $5.25;  33-44,  Mrs.  T.  F. 
Cam])bi'll.  $0.25;  34-37,  Miss  ]\[aggie  Conway,  $4.85;  34-35.  William  Jackson,  $4.25; 
3e-49,  .^Ir.<.  Maggie  O'Xeill,  $12.39;  28-35,  Henry  Kasscr,  $7.50;  29-47,  Ralph  E.  Cooke, 
$0.50;  30-46,  Samuel  Kelly,  $7.45;  30-47,  C.  M.  Palmer,  $4.25;  32-37,  Frank  W.  Page, 
$9.21;  33-1.  J.  J.  Sweeney,  $3.55;  27-49,  Benton  Thomas,  $4.25;  32-46,  0.  W.  Perry, 
$4.15;  33-47,  Jno,  R.  Kennedy,  $4.75;  35-40,  Henry  Coojier,  $5.25;  29-40,  Lawrence 
Keifer,  $0.50;  25-44,  I).  E.  Parsons,  $4.25;  25-43,  Jos.  Vernan,  $4.75;  35-2,  Frank  Vick, 
86.55;  .35-37,  Harvey  Vincent,  $3.10;  32-49,  Irving  A.  Penny,  $9.45;  34-47,  Mrs.  Emma 
Wallace,  $8.24:  26-1,  W.  W.  Walkins,  $8.45;  28-47,  Wm.  Dobbins,  $4.75;  25-45,  F.  J. 
Earl.  $9.45:  31-48,  Mrs.  A.  S.  Klein,  $5.25:  31-47,  Chas.  C.  Quick,  $4.75;  28-2,  H.  H. 
Wallerson,  $3.15;  26-37,  Jaysou  Rumniel,  $2.25;  31-38,  3[rs.  William  Emery,  $12.70; 
32-35,  Miss  Sarah  Keim,  S11.44;  28-34,  Mrs.  Wm.  M.  Frantz,  $12.25;  34-48,  A.  A.  Weaver, 
$4.15;  32-34.  Jacob  Frochlich,  $6.25;  28-50,  Jos.  A.  Webster,  $8.40;  3.5-49,  AValter 
Reynolds,  $21.75;  26-38,  Miss  Sadie  B.  Koehler,  $10.25;  33-43,  Miss  Mary  Gilles,  $3.50; 
29-48,  C.  H.  Remington,  $19.75;  27-38,  Jno.  E.  Ziegler,  $11.15;  31-39,  Silas  Lai)ham, 
$4.80;  20-35,  Frank  C.  Glasser,  $4.50:  30-45,  Geo.  W.  Martin, $12. 40;  28-30,  M.  M.  Maho- 
ney,  $4.20;  20-36,  Herman  Zumm,  $3.20. 

Hat  Depakt.mext. — 50-37,  Julius  Hanser,  $4.50;  58-41,  W.  E.  Schermerhorn,  $10.35; 
60-38,  Edwin  McKenzie,  $5.60;  50-44,  ^Mrs.  Emma  Adams,  $9.50;  50-35,  Geo.  P.  Bower, 
$3. .50;  .5.5-32,  Miss  Mamie  McXeill.  $15.00;  57-44,  Miss  Frances  M.  Schreier,  $12.45;  53-34, 
C.  W.  Hammond,  $o.0():  55-35,  Donald  M.  Hepler,  $1.25;  58-43,  Miss  Anna  K.  Seager,  $15.00; 
50-45,  E.  A.  McMickle,  $3.45;  00-39,  George  Bauer,  $0.40:  51-44,  Miss  Lillian  Betts,  $4.50; 
60-37,  Peter  McFetters,  $3.50;  55-33,  Walter  Shearer,  $4.25;  00-41,  Mrs.  J.  G.  Uinolf, 
$12.00;  50-38,  Walter  Hallowell,  $3.40;  56-44,  Jno.  M.  Small,  $7.65;  52-44,  Mre.  S.  S.  Nefif, 
$4.75;  57-35,  Dr.  C.  M.  Brucker,  $12..50;  55-36,  Judson  Brown,  $4.50;  53-44,  Miss  Mabel 
Xeilson,  $0.25;  53-31,  Albert  Spare,  $13.13;  53-35,  AVilliam  Jackson,  $2.75;  58-44,  J.  A. 
Joseph,  $2.55;  58-42,  Benjamin  Spring,  $6.70;  54-43,  Mrs.  E.  Nichols,  $4.50;  57-42,  Albert 
A.  Borton.  $3.50:  57-36,  Mrs.  T.  F.  Campbell.  $4.50;  57-32,  Edward  O'Connor,  $4.75; 
57-33,  J.  J.  Sweeney,  $7.05;  59-44,  Edward  Jessup,  $4.85;  51-40,  Mrs.  A.  S.  Klein,  $15.50; 
eO-42,  Miss  Lulu  Tate,  $12.47,  54-44,  Jlrs.  Maggie  O'Neil,  $5.35;  55-37,  Frank  Casper, 
$7.20;  57-43,  I^Irs.  Jno.  R.  Cassel,  $6.80;  50-36,  W.  S.  Osborn,  $24.85;  53-32,  Frank  Vick, 


OFFICE    ROUTINE    AND    BOOKKEEPING.  151 

$18.50;  53-36,  Silas  Laphani,  114.50;  58-40,  Harry  Vincent,  ^7.65;  55-44,  Frank  W.  Page, 
M.25;  60-40,  Wm.  Dobbins,  S3. 35;  50-40,  Chas.  Dodson,  $11.05;  59-31,  D.  E.  Parsons, 
$5.50;  55-34,  Mrs.  Emma  Wallace,  $10.25;  58-39,  M.  M.  Mahoney,  19.87;  57-34,  Jos.  A. 
Webster,  $10.35;  58-45,  Irving  A.  Penny,  $15.85;  58-37,  F.  J.  Earl,  $12.45;  56-43,  Chas.  C. 
Quick,  $10.50;  52-43,  A.  C.  Yates,  $9.75;  59-32,  Jno.  V.  Redmond,  $4.50;  60-45;  Chas.  B. 
Elliot,  $7.80;  60-44,  Mrs.  William  M.  Frantz,  $4.50;  53-33,  Jos.  E.  Ziegler,  $13.45;  50-39, 
Aug.  Morley,  $5.25;  51-39,  Geo.  E.  Munson,  $5.75;  54-45,  C.  H.  Remington,  $6.55;  57-31, 
Walter  Reynolds,  $11.25;  55-38,  Miss  M.  E.  Frost,  $14.25;  58-38,  Albert  Ginglebach,  $4.50; 
51-41,  Valentine  Ress,  $15.67;  51-38;  Theodore  Oilles,  $4.75;  58-49,  Frank  0.  Glasser, 
$10.05. 

Dress  Goods  Depajitment. — 75-25,  Martin  Schneider,  $28.50;  79-31,  Miss  Mary  Amb- 
ler, $14.90;  79-34,  Julius  Hanser,  $21.25;  77-35,  Robt.  D.  McCoy,  $112.35;  81-36,  Mrs.  E. 
McDaiiiel,  $33.35;  82-27,  Donald  M.  Hepler,  $31.24;  81-24,  Jno.  H.  Alvey,  $36.90;  85-38, 
Miss  Frances  M.  Schreier,  $45.25;  85-36,  Miss  Anna  K.  Seager,  $17.64;  75-36,  Geo.  P. 
Bower,  $23.55;  86-35,  Geo.  W.  Jones,  $16.35;  77-36,  Ed.  McCormick,  $29.90;  79-36,  Geo. 
McFarlan.  $48.55;  84-35,  Jno.  R.  Kennedy,  $21.75:  81-30.  George  Bauer,  $14.20;  81-25, 
Miss  Anna  Spencer,  $31.15;  79-32,  Fred  W.  Tbwnsend,  $24.25;  84-28,  Judson  Brown, 
$9.80;  77-25,  Lawrence  Kiefer,  $11.12;  82-25,  E.  J.  McLain,  $11.84;  82-36,  Miss  Mamie 
McNeil,  $37.75;  80-26,  Mrs.  A.  S.  Klein,  $50.25;  80-25,  Albert  A.  Borton,  $12.25;  85-26, 
Mrs.  T.  F.  Campbell,  $26.50;  78-27,  Harvey  Vincent,  $14.25;  83-27,  Mrs.  Jno.  R.  Cassel, 
$12.45;  86-33,  Miss  Sadie  B.  Koehler,  $14.65;  70-25,  Frank  ISTaylor,  $46.45;  79-33,  Benjamin 
New,  $75.35;  78-26,  Chas.  Lake,  $41.85;  84-27,  P.  Cassidy,  $18.45;  82-37.  A.  A.  Weaver, 
$28.50;  78-25,  C.  G.  Davis,  $90.80;  85-33,  Geo.  W.  Martin,  $35.05;  82-20,  Mrs.  E.  Nichols, 
$28.30;  86-32,  Solomon  Erb,  $24.37;  81-35,  Chas.  Oakley,  $98.25;  85-32,  A.  Messingor, 
$34.10;  75-35,  F.  J.  Earl,  $24.15;  77-26,  Edward  O'Connor,  $117.80;  83-30,  Jno.  R.  Fell, 
$24.75;  85-27,  A.  C.  Yates,  $20.75;  86-36,  Miss  Mary  Gilles,  $51.40;  8-3-28,  Aug.  Morley, 
$05.05;  83-29,  C.  M.  Palmer,  $42.50;  75-37,  Theodore  Gilles,  $24.95;  84-30,  0.  W.  Perry, 
$14.20;  84-29,  Herman  Znmm.  $19.45;  83-30,  Chas.  C.  Quick,  $24.48;  78-28,  C.  H.  Rem- 
ington, $24.80. 

Clothing  Department.— 104-17,  Robt.  1).  McCoy,  $121.00;  105-21,  Geo.  P.  Bower, 
$42.50;  112-22,  Geo.  N.  Smith,  $18.50;  102-18,  Frank  R.  Heath,  $41.40;  112-19,  Jno. 
Hess,  $18.00;  119-23,  Walter  Shearer,  $74.80;  108-21,  George  Bauer,  $31.50;  104-24,  Edwin 
McKcnzie,  $19.80;  103-24,  E.  J.  McLain,  $45.65;  110-20,  Mrs.  W.  C.  Bostwick,  $22.50; 
110-19,  Jno.  M.  Small,  $19.98;  105-18,  Walter  Hallowell,  $21.75;  109-23,  Wui.  Liman, 
$37.45;  114-20,  Benjamin  Spring,  $29.35;  112-23,  Frank  Casper,  $19.80;  107-18,  Wm. 
Dobbins,  $14.05;  100-21,  E.  A.  McMickle,  $27.80;  109-24,  Peter  McFetters,  $51.45;  114-21, 
Chas.  Dodson,  $37.87;  110-18,  Paul  Steele,  $56.45;  114-17,  Wm.  Jackson,  $18.00;  105-19, 
Geo.  W.  Jones,  $98.25;  108-20,  Walter  W.  Stern,  $46.20;  103-22,  AV.  AV.  Earnest,  $19.70; 
102-25,  Mrs.  S.  S.  Neff,  $43.50,  100-22,  Chas.  Northrop,  $31.20;  115-24,  Geo.  Engert, 
$21.75;  119-24,  Benton  Tiiomas,  $18.00;  115-23,  Wm.  Johnson,  $25.50;  118-23,  Edward 
Jessup,  $24.25;  103-23,  Jno.  M.  Utz,  $25.95;  107-19,  Geo.  Eaton,  $37.65;  118-24,  William 
Nye,  $41.73;  114^22,  W.  S.  Osborn,  $03.64;  101-19,  Chas.  B.  Elliott,  $37.85;  105-22,  Jos. 
Vernan,  $22.75-  101-25,  Samuel  Kelly,  $35.50;  114-19,  C.  C.  Waite.  $28.50;  102-19,  Jno. 
R.  Fell,  $15.50;  116-22,  Frank  W.  Page,  $32.25;  108-18,  O.  \V.  Perry,  $49.48;  114-18, 
Gustav  Fisher,  $24.25;  112-21,  Mrs.  Emma  Wallace,  $31.50;  100-20,  Jno.  R.  Kennedy, 
$34.20;  105-20,  Wm.  B.  Knight,  $24.85;  104-10,  H.  H.  Watterson,  $18.40;  101-18,  M.  M. 
Mahoney,  $48.75;  116-23,  A.  A.  Weaver,  $19.00;  112-2(»,  Dr.  D.  S.  (;oble,  $29.70;  106-23, 


15i 


Ol-KICE    RDUTINK    AND     IJOOKKEEIMNG. 


D.  E.  Fiirson.s,  ^.Jo.od;  102-20,  Frank  C.  Glusscr,  *21.25;  lOC-24,  Jos.  A.  Webster.  $20.15: 
108-17,  A.  Mos.siiij;er,  *-i5.20;  103-21,  Mrs.  Lottie  Mitchell,  *C.50;  108-19,  Jno.  \'.  Ued- 
mond,  *il8.00;  102-17,  Geo.  E.  Munson,  *44.70;  104-25,  Walter  Reynolds,  $75.00. 

Enter  tlie  footings  of  the  Abstract  of  Time  Sales  sheets  in  the  Summary  of  Daily  Sales 
as  j)reviously  instructed.  Find  the  total  time  sales  for  eacli  Sales  Ledger  and  also  for  each 
department.     Lay  aside  tlie  Abstract  of  Time  Sales  sheets. 

Casli  Sales,     llecord  the  cash  sales  listed  below  as  iireviously  instructed. 

SnoK  Dei-aktmkxt.— 0-29,  $15.40:  10-31,  *4.75;  8-31,  $0.75;  5-30,  $4.50;  7-34,  $20.50 
4-28,  $12.80;  2-37,  $14.75:  9-30,  $3.25;  1-34,  $17.40;  5-31,  $4-75;  5-37,  $7.65;  11-35 
$11.40;  13-33,  $10.50;  2-31,  $18.25;  15-35,  $20.50;  9-34,  $13.51;  3-34^  $0.75;  13-37,  $4.80 
10-30,  $18.70;  14-35,  $9.75;  9-35,  $15.40;  11-34,  $10.00;  14-30,  $14.84;  1-29,  $25.30;  2-32 
$18.75;  13-38,  $3.50;  13-32,  $7.25;  1-38,  $14.35;  14-27,  $11.80;  8-38,  $9.80;  11-28,  $7.63 
14-31,  $12.47;  4-.35,  $9.74;  12-32,  $10.47;  8-37,  $20.40;  14-37,  $0.50;  0-34,  $12.75 
12-33,  $4.25;  10-29,  $18.40:  4-29,  $4.80;  13-27,  $7.15;  12-34,  $9.10;  6-35,  $10.12;  13-20 
$4.95;  8-32,  $9.25;  0-30,  $11.15;  12-37,  $23.24;  9-32,  $9.45;  1-35,  $4.49;  3-29,  $13.45 
2-38,  $15.35;  9-31,  $29.74;  7-33,  $18.40;  12-38,  $14.50;  4-34,  $16.40;  9-33,  $12.20;  13-34^ 
$14.30;  5-32,  $14.50;  2-30,  $13.50;  14-34,  $1 1.50;  0-33,  $7.75;  5-30,  $4.80;  15-37,  $12.80 
3-33,  $10.10;  15-30,  $4.25;  1.3-30,  $15.00;  8-35,  $18.25;  10-26,  $23.00;  7-28,  $24.35 
15-30,  $10.30:  10-27,  S9.45;  11-29,  $7.15;  7-29,  $11.65;  11-30,  $10.37;  10-28,  $9.40 
1-30,  $13.75;  11-31,  $14.50;  14-32,  $22.50;  15-31,  $4.90;  4-30,  $12.85;  15-32,  $19.47 
8-39,  $10.00;  15-38,  $13.35;  8-30,  $17.03;  4-39,  $20.40;  15-33,  $12.85;  13.39,  $24.60 
4-31,  $9.75;  0-31,  $14.35;  14-33,  $12.75;  11-33,  $4.80;  3-30,  $7.65;  1-36,  $24.75;  15-34 
$19.80;  0-32,  $4.75;  12-30,  $8.90;  4-33,  $12.40;  7-31,  $9.15:  7-32,  $12.45;  2-28,  $18.45 
3-31,  $25.30;  8-33,  $12.75;  5-33,  $21.25;  2-29,  $11.05;  8-34,  $9.99;  3-32,  $3.50;  5-34 
$4.75;  1.3-35,  $19.80;  12-35,815.00;  11-32,  $12.50;  4-32,  $18.45;  7-30,  $7.05;  5-35,  $4.25 
2-27,  $14.85;  1-31,  $20.75. 

Glove  Dep.vktmext.— 34-42,  87.85;  29-40,  $12.20;  25-38,  $4.25;  27-47,  $11.40^  29-49, 
$7.25;  2S-44,  $18.30;  33-3,  $9.80;  28-41,  $7.35;  32-44,  $12.25;  34-40,  $4.04;  26-42,  $3.45; 
27-42,  $4.75;  33-39,  $0.25;  29-50,  $9.50;  25-39.  $5.25;  27-50,  $18.40;  28-49,  $14.75; 
30-39,  $10.27;  33-40,  $8.45;  26-49,  $16.25;  26-43,  $4.50;  34-50,  $10.70;  34-39,  $8.15; 
29-36,  $12.84;  29-1,  $3.25;  31-43,  $8.40;  25-48,  $10.48;  29-2,  $34.10;  31-44,  $3.00;  25-50, 
$9.50;  29-37,  $4.75;  35-50,  $11.50;  34-43,  $12.40;  28-39,  $5.25;  3-5-1,  $14.85;  32-41, 
$25.50;  35-45,  $27.45;  29-38,  $5.25;  33-2.  $0.40;  25-47,  $11.20;  33-50,  $4.95;  35-38, 
$12.00;  34-1,  $10.19;  28-40,  $4.75;  25-37,  $14.75;  29-41,  $18.45;  20-40,  $6.50;  30-37, 
$11.50;  33-37,  $4.75;  27-40,  $4..50;  33-38,  $14.25;  29-42,  $4.75;  32-43,  $21.50;  27-41, 
$9.50;  20-41,  $4.80;  27-48,  $10.47;  28-37,  $10.12;  30-30,  $6.55;  32-38,  $3.10;  25-42, 
$14.85;  32-48,  $9.47;  30-43,  $0.34;  29  43,  $10.45;  33-48,  $4.25;  31-40,  $20.25;  32-39, 
$7.00;  29-35,  $10.75;  34-34,  $11.15;  30-44,  $4.50;  34-38,  $12.45;  30-38,  $5.00;  32-40, 
$18.75;  31-41,  $10..50;  27-39,  $11.40;  35-43,  $8.45;  34-44,  $9.75;  35-47,  $3.40;  29-44, 
$9.10;  35-48,  $12.80;  28-38,  $19.20;  25-2,  $0.25;  31-42,  $4.30;  20-50,  $11.90;  35-44, 
$14.03;  2.5-4i;,  $7.00;  28-1,  $9.45;  34-45,  $18.80;  31-1,  $12.00;  30-41,  $4.50;  31-49,  $9.45, 
27-40,  $0.40;  :55.41,  $00.50;  33-49,  $15.10;  28-43,  $18.20;  32-50,  $25.49;  30-40,  $10.48: 
20-45,  $4.20;  35-40,  $8.90;  32-42,  $7.50;  28-42,  $12.15;  30-50,  $18.45;  27-43,  $3.50: 
34-49,  $2.75;  25-40,  $14.85;  33-41,  $21.50;  29-39,  $4.90;  34-41,  $11.75;  27-44,  $0.50; 
35-39,  $9..30;  31-45,  $12.84;  20-44,  $4.75;  33-42,  $9.35;  30-42,  $11.10;  27-45,  $.3.25; 
25-41,  $7.45;  20-2,  $13.35;  25-3,  $9.85;  27-1,  $7.00;  28-3,  $8.25;  29-3.  $12.00;  30-1, 
$9.50;  31-2,  $8.2.5. 


OFFICE    ROUTINE    AND    BOOKKEEPING.  158 

Hat  Department.— 53-41,  $G.70;  57-46,^12.47;  53-42,  $12.40;  54-40,131.50;  56-41, 
$6.70;  56-42,-  $10.00;  51-31,  $9.75;  53-43,  $4.60;  53-46,  $10.50;  51-32,  $18.50;  59-38, 
$4.50;  51-46,  $3.35;  54-32,17.65;  60-34,  $12.15;  55-41,  $9.55;  60-33,  $4.37;  51-33,17.63; 
59-39,  $8.95;  55-42,  $14.85;  54-33,  $11.10;  55-43,  $4.25;  59-40,  $0.91;  56-33,  $10.25; 
50-47,  $12.20;  54-34,  $9.25;  52-47,  $5.00;  54-47,  $4.00;  56-34,  $5.29;  56-47,  $14.25; 
50-43,  $4.25;  54-35,  $7.63;  56-35,  $3.50;  58-47,  $12.50;  52-35,  $7.65;  60-47,  $19.27; 
57-41,  $8.95;  60-48,  $12.50;  56-30,  $11.40;  56-48,  $5.45;  57-40,  $8.47;  52-48,  $4.25; 
56-37,  $16.80;  59-46,  $9.55;  52-30,  $12.40;  50-46,  $8.75;  50-32,  $11.50;  51-45,  $5.00; 
52-46,  $6.25;  60-43,  $4.75;  53-45,  $11.00;  52-41,  $5.85;  54-40,  $11.41;  00-35,  $3.45;  60-36, 
$14.91;  54-41,  $4.75;  52-42,  $19.70;  50-33,  $21.10;  5.5-45,  $18.25;  59-33,  $3.25;  55-40, 
$8.54;  54-42,  $4.25;  59-34,  $11.40;  51-42,  $4.50;  59-35,  $15.25;  52-45,  $4.04;  50-34, 
$13.45;  59-36,  $10.80;  50-45,  $4.50;  51-43,  $12.50;  59-37,  $14.50;  56-40,  $0.40;  50-41, 
^4.75;  57-45,  $10.05;  52-33,  $7.80;  53-37,  $21.40;  57-37,  $8.75;  58-46,  $11.70;  50-42, 
U.3o;  57-38,  $16.41;  53-38,  $12.25;  55-40,  $24.50;  57-39,  $21.10;  53-39,  $18.26;  55-39, 
$11.80;  60-40,  $19.60;  53-40,  $3.60;  59-45,  $14.20;  52-34,  $3.65;  54-48,  $15.00;  52-39, 
$8.75;  53-47,  $11.45;  56-40,  $6.83;  54-39,  $5.85;  58-33,  $8.54;  57-47,  $19.20;  52-40, 
$14.85;  58-48,  $7.65;  56-39,  $4.15;  58-34,  $11.70;  51-47,  $4.75;  51-34,  $12.85;  58-35, 
$21.10;  54-37,  $10.80;  50-48,  $12.50;  54-38,  $9.50;  59-41,  $8.00;  54-36,  $11.40;  59-42, 
$4.60;  51-35,  $8.75;  50-49,  $4.75;  51-36,  $9.45;  59-43,  $10.05;  56-38,  $12.50;  54-49, 
$7.80;  52-37,  $4.35;  60-32,  $11.60;  52-38,  $15.50;  58-36,  $10.25;  51-37,  $3.25.  y 

Dkess  Goods  Department.— 75-24,  $17.64;^82-24,  $28.50;  84-34,  $14.80;  79-28,  $9.63; 
80-34,  $15.40;  85-23,  $18.35;  77-27,  $9.24;  79-29,  $16.41;  77-28,  $14.50;  80-35,  $18.47; 
79-30,  $15.35;  84-26,  $12.84;  75-29,  $10.38;  85-24,  $9.25;  82-23,  $10.50;  80-30,  $18.40; 
85-25,  $25.50;  75-30,  $14.75;  79-37,  $10.10;  82-31,  $15.84;  80-31,  $18.30;  77-29,  $12.80; 
76-35,  $14.25;  86-34,  $30.40;  80-^'6,  $28.70;  81-34,  $16.34;  82-32,  $12.85;  77-30,  $11.63; 
82-33,  $14.27;  80-28,  $12.80;  84-24,  $24.50;  70-30,  $12.60;  77-31,  $24.85;  80-29,  $7.00; 
82-34,  $12.20;  83-26,  $14.50;  77-32,  $64.25;  84-25,  $22.80;  82-35,  $12.24;  86-26,  $16.80; 
77-33,  $4.50;  76-31,  $24.50;  84-36,  $17.40;  83-25,  $12.30;  75-26,  $17.64;  81-27,  $29.38; 
84-33,  $10.50;  82-29,  $12.40;  85-30,  $49.75;  76-26,  $44.85;  81-28,  $10.12;  85-29,  $18.47; 
75-27,  $45.75;  82-28,  $48.03;  78-29,  $22.50;  76-27,  $39.70;  75-28,  $18.36;  81-29,  $12.24; 
84-31,  $16.40;  78-30,  $10.20;  84-32,  $12.50;  77-23,  $18.30;  83-31,  $15.70;  79-35,  $24.75; 
83-32,  $19.38;  78-31,  $21.70;  80-23,  $28.05;  82-30,  $35.30;  76-28,  $18.46;  83-33,  $12.24; 
77-24,  $27.60;  78-32,  $24.85;  80-24,  $17.40;  83-34,  $10.81;  80-27,  $28.70;  85-31,  $59.75; 
78-33,  $10.81;  83-35,  $44.60;  76-29,  $48.47;  86-37,  $19.76;  8.5-34,  $25.60;  84-37,  $20.00; 
85-35,  $18.40;  77-34,  $23.80;  76-36,  $27.60;  86-25,  $40.75;  77-37,  $12.36;  78-24,  $37.85; 
79-26,  $14.80;  86-38,  $16.20;  79-27,  $12.85;  80-28,  $10.75;  76-34,  $24.25;  80-29,  $19.45; 
80-30,  $0.81;  79-38,  $18.50;  80-31,  $24.85;  75-38,  $v'3.75;  78-35,  $10.12;  80-32,  $31.15; 
81-36,  $10.87;  79-25,  $14.50;  80-33,  $19.45;  81-31,  $11.63;  75-31,  $24.70;  76-33,  $18.00; 
81-32,  $12.81;  80-27,  $21.90;  75-32,  $17.03;  81-33,  $14.40;  78-34,  $24.85;  75-33,  $19.81; 
76-32,  $17.46;  75-34,  $11.05. 

Clothing  Department.  — 111-17,  $11.65;  111-18,  $24.80;  118-17,  $17.00;  110-17, 
$01.10;  119-17,  $35.00;  117-20,  $18.30:  110-18,  $48.70;  118-18,  $90.30;  119-18,  $18.00; 
111-19,  $20.50;  117-21,  $13.00;  104-22,  $48.50;  118-19,  $10.00;  100-25,  $12.50;  115-18, 
$41.20;  117-22,  $39.50;  108-25,  $19.36;  115-19,  $81.90;  110-25,  $112.70;  104-23,  $40.50; 
106-18,  $21.25;  100-25,  $42.85;  111-24,  198.90;  112-25,  $14.30;  115-20,  $18.75;  114-24, 
$16.44;  116-19,  $80.50;  100-19,  $75.25;  119-19,  $14.00;  100-20,  $11.74;  114-25,  $21.20; 
106-20,  $38.45;  117-24,  $50.00;  117-18,  $28.50;  117-26,  $17.60;  119-25,  $21.75;  117-19, 


154:  (JlKICE    ROUTINE    AND    bUdKK  EEl'ING. 

*28.4U;  102---iO.  *TS.45:  118-20,  *S4.0O:  110-21,  filG.20;  103-25.  $50.80;  105-25,  *;12.45: 
105-20.  *2r.70:  llG-20,  ^10.00;  100-17.  *75.00;  110-22,  «;14.75;.  113-21,  *16.84:  111-22, 
$98.40;  107-25,  *12.00;  108-23,  |i70.15;  113-20,  $18.00;  110-23,  $22.25;  111-21,  $04.70; 
108-24.  $35.45;  10.5-23,  $10.75;  101-23,  $10.40;  109-18,  $00.50;  110-24,  $45.75;  105-24, 
$41.50;  100-18,  $18.47:  109-19,  $71.15;  102-24,  $28.40;  105-10,  $17.04;  109-20,  $38.45: 
113-22,  $10.00;  100-24,  $30.25;  10.5-17,  $19.75;  101-24,  $12.40;  115-21,  $29.80;  113-23, 
$11.45;  100-19,  $25.00;  103-18,  $18.47;  100-21,  $08.48;  110-20,  $12.80;  111-23,  $19.74: 
104-20,  $33.05;  118-22,  $40.05;  113-24,  $28.50;  115-22,  $14.75;  109-21,  $19.89;  118-21, 
$29.90;  103-19,  $48.75;  104-21,  $52.85;  107-20,  $12.40;  103-20,  $11.05;  109-25,  $80.70; 
110-20,  $14.25;  112-20,  $17.40;  110-21,  $12.00;  101-20,  $44.50;  108-22,  $18.75;  110-24, 
$10.83;  102-21,  $19.25;  112-24,  $34.45;  117-23,  $25.85;  101-21,  $19.75;  111-20,  $12.50; 
102-22,  $81.48;  107-20,  $29.80;  101-22,  $12.40;  113-18,  $09.75;  102-23,  $3.5.80;  107-21, 
$97.00;  100-22,  $48.85;  107-22,  $50.05;  113-19,  $91.75,  119-22,  $7.04;  104-18,  $12.85; 
107-23,  $38.45;  110-25,  $21.20;  114-23,  $75.00;  100-23,  $87.50;  107-24,  $17.90;  117-25, 
$12.48;  108-10.  $7.00;  119-21.  $24.75;  112-18,  $98.04;  109-22,  $11.75;  112-17.  $10.80; 
104-19,  $25.00. 

Find  tlie  total  casli  sulos  for  oaoli  deiiartinent.      Virify  your  addition. 

Clerks'  Daily  Sales.  iMitir  thr  daily  totals  nf  tlie  Clerks"  Siunmary  sheets  listed  below 
as  i)revioiisly  instructed. 

Clerk  1,  $233.04;  2,  $109.05,  3,  $110.00;  4,  $153.48;  5,  $89.70;  0,  $102.27;  7,  $140.00;  8, 
$170.95;  9,  $149.85;  10,  $152.30;  11,  $110.05;  12,  $138.81;  13,  $140.55;  14,  $140.70;  15, 
$150.07;  2.5,  $149.13;  20,  $127.95;  27,  $121.21;  28,  $180.30;  29,  $197.20;  30,  $150.03;  31. 
$157.25;  32,  $192.00;  33,  $1.57.84;  34,  $159.93;  35,  $229.49;  50,  $104.15;  51,  $140.35;  52, 
$135.14;  .53,  $184.73;  54,  $108.89;  55,  $155.09;  50,  $141.12;  57,  $179.15;  58,  $178.41;  59, 
$130.81;  00,  $158.12;  75,  $327.01;  70,  $330.-59;  77,  $495.00;  78,  $334.58;  79,  $321.25;  80, 
$301.88;  81,  $331.04;  82,  $370.30;  83,  $298.70;  84,  $235.45;  85,  $404.90;  80,  $325.48;  100, 
$373.40;  101,  $227.55;  102,  $409.73;  103,  $233.47;  104,  $448.15;  10.5,  $339.89;  lOU,  $322.78: 
107,  $317.10;  108,  $341.09;  109,  $371.34;  110,  $320.03;  111,  $357.19;  112,  $299.09;  113, 
$240.29;  114,  $314.25;  11.5,  $233.05;  110,  $311.78;  117,  $233.69;  118,  $337.83;  119,  $227.34. 

Find  tlie  footings  of  eticli  department;  also  the  total  for  the  day.  Xext  find  tlie  total  for 
the  montli.     Verify  your  work. 

Cashier's  Statements.  Knter  the  casli  receipts  and  jKiyineuts  listed  below  as  previ- 
ously instructed. 

Reckii'TS.  Sales  Ledycnt.  -Miss  Mary  Ambler,  $23.55;  .T.  W.  Ilanison,  $25.(iO;  Kd. 
McCormick,  $22.30;  Kobt.  D.  McCoy,  $150.00;  Wni.  Sassanian,  $100.00;  Frank  K.  Heath, 
$50.00;  J.  G.  Atkinson,  $94.80;  Geo.  McFarlan,  $15.25;  Miss  Pauline  Sale,  $21.02;  Mrs. 
Emma  Adams,  $24.25;  Julius  llanser,  $17.05;  Jno.  H.  Alvey,  $25.60;  Tlios.  j\[eElwain, 
$52.70;  .Miss  Susan  Smylhe,  $50.90;  Jos.  E.  McGregor,  $47.90;  C.  W.  Hammond,  $54.75; 
Geo.  P.  Bower,  $9.50;  Wm.  llenning,  $31.55;  Burton  E.  McGuire,  $11.90;  Kichard  Smythe, 
$20.75;  .Martin  Schneider,  $11.15;  Edwin  McKenzie,  $35.50;  Jno.  Stalder,  $30.50;  B.  W. 
Hayden,  $21.90;  Geo.  Bauer,  $17.95;  Chas.  Ilarriugton,  $41.00;  Mrs.  W.  C.  Bostwick, 
$23.70;  Jno.  M.  McKinley,  $25.00;  Albert  E.  Shaw,  $40.40;  Miss  Ella  McMaster,  $30.50; 
Samuel  Ilalderman,  $01.00;  Miss  Lillian  Betts,  $24.90;  E.  A.  McMickle,  *;31.21;  Walter 
Shearer,  $13.20;  E.  V.  Ncal,  $57.25;  Judson  Brown,  $24.25;  Walter  Ilallowell,  $30.75; 
Albert  A.  Borton,  $21.00;  Edwin  Short,  $13.25;  Geo.  N.  Nash,  $20.00:  Miss  Sadie  Harlan, 
$53.95;  C.   I.,   liehrns.  $35.00;  Benjamin  New,  $125.00;  Hiram  Simpson,  $45.00;  INIrs.  E. 


OFFICE    ROUTINE    AND    BOOKKEEPING.  155 

Nichols,  $88.95;  Clarence  W.  Campbell.  «!31.50;  Mrs.  M.  Jacobs,  *17.3.5;  A.  B.  Jennings, 
$28.15;  K.  S.  Collins,  $50.00;  Chas.  Northorp,  $50.00;  Albert  Spillman,  $31.75;  Wm. 
Noyes,  $113.99;  Walter  Kane,  $15.50;  Henry  Kasser,  $33.00;  Mrs.  Jno.  R.  Cassel,  $55.70; 
William  Nye,  $-25.00;  Paul  Steele,  $20.48;  Ciias.  Oakley,  $44.11;  Jno.  M.  Stone,  $43.08; 
Hugh  J.  O'Brien,  $53.10;  J.  J.  Sweeney,  $43.50;  J.  E.  M.  Keller,  $29.45;  P.  Cassidy, 
$59.33;  Miss  Chrissa  Katz,  $47.10;  Miss  Maggie  Conway,  $55.00;  Kdward  O'Connor, 
$125.50;  Fred.  W.  Townsend,  $2(5.05;  Geo.  W.  Ottiiiger.  $10.85;  Jno.  M.  Utz,  $23.75; 
Mrs.  Maggie  O'Neill,  $49.25;  Wm.  Vanderpool,  $50.00;  Mrs.  H.  W.  Dickinson,  $40.01; 
Samuel  Kelly,  $17.15;  Chas.  Dodson,  $35.71;  W.  S.  Osborn,  $19.50;  J.  A.  Vanderbelt, 
$36.00;  C.  G.  Davis,  $75.00;  Jno.  R.  Kennedy,  $3.5.00;  W.  AV.  Earnest,  $25.37;  A.  J.  Kin- 
neman,  $34.25;  Solomon  Erb,  $10.50;  Frank  Krauss,  $10.00;  F.  J.  Earl,  $30.40;  Wm.  B. 
Knight,  $30.95;  Chas.  B.  Elliot,  $50.00;  M.  C.  Parker,  $51.50;  Jos.  Vernan,  $30.00;  D. 
E.  Parsons,  $25.00;  Jacob  Froehlich,  $75.00;  Miss  Sadie  B.  Koehler,  $83.25;  Prank  Vick, 
$55.00;  Gustav  Fisher,  $23.25;  R.  G.  Laird,  $30.55;  Harvey  Vincent,  $30.00;  Irving  A. 
Penny,  $15.90;  Adam  Vogel,  $38.98;  Alfred  Qainn,  $39.47;  Frank  M.  Wagner,  $93.50; 
L.  L.  Leaver,  $40.50;  Jno.  B.  Fowler,  $48.40;  Chas.  Lake,  $43.75;  Mrs.  A.  K.  Gilbert, 
$38.35;  Leopold  Rice,  $53.55;  C.  C.  AVaite,  $40.00;  Miss  Amie  Rathbun,  $48.40;  Mrs.  H. 
H.  Martin,  $43.35;  Dr.  D.  S.  Goble,  $31.75;  Valentine  Ress,  $10.00;  Peter  M.  Ward, 
$69.33;  A.  Messinger,  $30.65;  Miss  Mary  Gilles,  $35.80;  Mrs.  G.  W.  Miner,  $35.00;  Cora 
W^ilters,  $50.30;  A.  A.  Weaver,  $25.00;  Jno.  V.  Redmond,  $25.00;  August  Morley,  $33.75; 
Theo.  Gilles,  $14.80;  Frank  Zimmer,  $30.15;  Jno.  Zoll.  $31.15;  L.  V.  Maurer.  $13.20; 
Herman  Zunim,  $35.10. 

General  Ledger.  Enter  the  following  on  a  Receijits-General  Ledger  sheet.  Miss  Josie 
Nicolay,  $76.40;  Chas.  F.  Marting,  $50.00;  Cyrus  Van  AVinkle,  $9.30;  S.  E.  Walters,  $32.65; 
Geo.  Noble,  $75.00;  J.  W.  Brady,  $19.23;  Joseph  Schwartz,  $36.50;  Albert  Bassett,  $50.00. 

Payments. —  (reweraZ  Ledger.  The  following  accounts  have  been  paid  in  full;  make  a 
full  record  of  them  on  a  Payments-General  Ledger  sheet.  Utz  &  Dunn,  Rochester  Hat  Co., 
J.  W.  Riddle,  Boston  Glove  Co. 

Purchase  Ledger.  On  a  Payments- Purcliase  Ledger  sheet  enter  all  accounts  that  are  to 
be  paid  to-day  to  be  entitled  to  a  discount. 

Enter  the  footings  of  all  the  detailed  statements  on  tlie  Cashier's  Abstract  Statement 
and  find  the  balance  of  cash. 

As  General  Bookkeeper  you  will  now  verify  the  cashier's  statements.  Enter  the  items  on 
the  Cashier's  Abstract  Statement  in  the  Abstract  Cash  Account.     Lay  aside  the  statements. 

Enter  the  footings  of  the  Abstract  of  Cash  Sales  sheets  in  the  Summary  of  Daily  Sales 
and  ascertain  the  total  cash  sales.  Foot  the  department  columns  of  the  Summary  of  Daily 
Sales  in  red  ink.  Next  add  the  red  ink  footings  to  ascertain  the  monthly  totals.  Compare 
the  footings  and  monthly  totals  with  the  footings  and  monthly  totals  of  the  Clerks'  Daily 
Sales  record.  Rejiort  any  discrepancies  that  you  may  find  to  tiie  teacher.  Place  the  Abstract 
of  Time  Sales  sheets  in  the  proper  envelopes. 

Adjust  the  interest  on  the  partners'  investments.      {See  pagen  S3  ami  117.) 

Posting.  Preparatory  to  posting,  foot  and  rule  tlie  credit  column  of  the  Purchase 
Ledger,  the  Department  Cliarges  form  and  the  Abstract  Cash  Account.  Post  to  the  General 
and  Purchase  Ledgers  as  previously  instructed.  Post  the  totals  of  the  Sales  Ledgers  from 
the  Summary  of  Daily  Sales  to  the  proper  accounts  in  the  General  Ledger.  Post  the  total 
sales  of  each  merchandi.se  dei)artment  to  iia  proper  account  in  the  General  Ledgei-.      Ijike- 


156  OKKICE    ROUTINE    AND    1500KKEEPIXG. 

■wise  iiost  till-  totiil  ])ui-cli:i.scs  as  fouiKl  in  tlie  Deparlnu-nt  Cliiirges  form.  Post  the  footings 
of  tlie  coliitnns  of  tlie  Abstract  Ca.sli  Account,  that  are  necessary  to  be  posted,  to  the  proiter 
accounts  in  (lie  General  Ledger.  The  footing  of  the  Discount  column  is  jwsted  to  tlie  debit 
of  the  Purchase  Leilger  account  and  to  the  credit  of  Merchandise  Discounts  account  in  the 
(ienenil  Ledger.  Post  the  total  amount  of  ])urcliases  to  the  Purchase  Ledger  account  in 
the  General  Ledger.  Have  you  placed  the  ledger  folio  before  all  items  that  you  have  posted  ? 
Check  over  your  jiostiiig.     P'ile  all  documents  in  the  proper  receptacles. 

Abstract  of  Purchase  and  Sales  Ledgers.  Li  business  the  bookkeepers  of  the 
various  sub-ledgers  render  aljstracts  of  their  Ledgers  to  the  General  Bookkeeper  at  the  time 
of  taking  a  trial  balance  or  oftencr.  Below  are  given  the  balances  of  the  accounts  in  the 
various  .Sales  Ledgers,  from  which  you  will  write  up  abstracts  on  the  blanks  furnished  for 
that  jnirpose.  You  will  also  make  an  abstract  of  the  accounts  in  the  Purchase  Ledger  that 
liave  not  been  ])aiil.  The  total  of  each  abstract  should  equal  the  balance  of  its  ledger 
account  in  the  General  Ledger.  If  a  discreiiancy  exists  you  will  be  oldigcd  to  locate  it 
before  taking  a  trial  balance. 

A  TO  G  S.\LES  Ledgkk.  Samuel  Althoff,  §27.05;  Mrs.  Geo.  Anderson,  *66.00:  J.  G. 
Atkinson,  $76.10;  Mrs.  Emma  Adams,  §28.30;  Jno.  H.  Alvey,  $36.90;  Henry  Beaver,  $53.55; 
Geo.  P.  Bower,  $811.55;  George  Bauer,  $61.10;  ilrs.  W.  C.  Bostwick,  $29.90;  Miss  Lillian 
Betts,  $17.75;  Dr.  C.  M.  Brucker.  $16.00;  JiuLson  Brown,  $26.30;  Albert  A.  Borton.  $25.25; 
Mrs.  Henry  Bader,  $69.35;  C.  L.  Behrns.  $14.25;  Mrs.  T.  F.  Campbell,  $47.75;  K.  S. 
Collins,  $16.25;  Frank  Casper,  $35.50;  Mrs.  Jno.  R.  Cassel,  $19.25;  P.  Cassidy,  $18.45;  Miss 
Maggie  Conway.  $18.62;  Ralph  K.  Cooke.  $40.29;  Henry  Cooper.  $28.80;  J.  W.  Clark, 
$18.93;  Wm.  Dobbin.s,  $42.40;  Mrs.  Kdwiii  Dalton,  $41. ("o;  C.  O.  Dinwiddie,  $23.45:  Clias. 
Dodsoii,  $48.92;  C.  G.  Davis,  $37.95;  W.  \V.  Kaniest,  $23.33;  Solomon  Erb,  $21  72;  Geo. 
Engcrt.  $29.<;0;  F.  J.  Earl,  $23.45;  (Jeo.  Eaton,  $69.45;  Chas.  B.  Elliot.  $43.79;  H.  E. 
Eastwood,  $41.75;  Mrs.  Wm.  Emery,  $40.35;  Jno.  Eberhard,  $20.00;  Mrs.  Wm.  M  Frantz, 
$26.50;  Miss  Euphemia  Faucctt,  $5.73;  Jacob  Froehlich,  $19.10;  Jno.  R.  Fell,  $43.75;  Gustav 
Fisher,  $24.25;  Miss  M.  E.  PVost,  $21.65;  Albert  Ginglebach,  $13.90;  Jno.  5L  Gleason, 
$27.04;  Clia.s.  K.  Gibson,  $25.50;  Dr.  D.  S.  Goble.  $29.70;  Miss  Mary  Gilles,  $26.00;  Theo- 
dore Gilles,  $29.70;  L.  K.  Grainger,  $9.75;  Frank  C.  Glasser,  $45.20. 

H  TO  M  S.u.Ks  L:-:iKii:K.  J.  \V.  Harrison,  $0.70;  Frank  R.  Heath.  $8.45;  Julius  Hanser, 
$25.75;  Geo.  Heitz,  $2.5.75;  C.  W.  Hammond,  $9.25;  Donald  U.  ]iei)ler,  $43.49;  Alonzo 
Hicks,  $26.40;  Jno.  Hess,  $41.25;  Chas.  Harrington,  $9.84;  Mrs.  J.  G.  Hinolf.  $35.05; 
Samuel  Halderman,  $4.85;  Thos.  Hawkins,  $19.00;  Walter  Hallowell.  $12.15;  Miss  Sadie 
Harlan,  $5.(10;  William  Iiinian,  $47.45;  Win.  Jackson.  $25.00;  J.  A.  Jose])h,  $22. .55;  Geo. 
AV.  .lones.  $114.60;  Win.  Johnson,  $57.00;  Edward  Jessup,  $41.60;  Mrs.  C.  W.  Jefferson, 
$38.75;  Walter  Kane.  $6.25;  Henry  Kasser.  $16.75;  Henry  Kurtz,  $20.35;  Chas.  Kaehler, 
$24.75;  Samuel  Kelly.  $42.95;  Henry  Kempt",  $10.00;  Jno.  R.  Kennedy,  $48.50;  Lawrence 
Kiefer,  $17.68;  A.  J.  Kinnemaii,  $21.25;  Mrs.  A.  S.  Klein,  $82.48;  Miss  Sarah  Keim, 
$14.44;  Frank  Krauss,  $9.2(1;  Wm.  B.  Knight,  $29.J();  Miss  Sadie  B.  Koehler,  $24.90;  Silas 
Laithani.  $25.55;  L.  L.  Leaver,  $33,19;  Chas.  Lake,  $41.85;  H.  B.  Lehman,  $18.55;  Geo. 
W.  .Martin.  $55.,s(i:  M.  M.  Malioney,  $75.67;  A.  jNIessinger,  $79.30;  Mrs.  Lottie  Mitchell, 
$103.40;  .Mrs.  (i.  W.  .Miner,  $29.35;  Aug.  Morley,  $85.10;  Geo.  E.  MunsoU;  $50.45;  L.  V. 
Muurer,  $10.50. 

Mc  TO  R  SAI.K8  Lkdgeu.  Jno.  C.  McCarthy,  $41.09:  Robert  D.  McCoy,  $118.95;  Mrs. 
E.  McDaniel.  $(>8. 10;  Ed.  McCorniick,  »-*9.30;   Geo.  McFarlan,  $48.55-,  Jos.  E.  McGregor, 


OFFICE    ROUTINE    AND     ISOOK  KEEPING.  157 

$28.50;  Edwin  McKenzio.  $15.90;  Mrs.  Kate  McKeiiiia,  $00.55;  E.  J.  McLaiii,  1112.94; 
Jolin  M.  McKinley,  ?!43.5-2;  Miss  Ella  MeMaster,  $10.'25;  Miss  Mamie  McNeill,  175.55;  E.  A. 
McMickle,  $31.25;  Mrs.  T.  V.  Mcilenamin,  $105.19:  Peter  McFetters,  $72.07;  Frank  Nay- 
lor,  $85.10;  Mrs.  S.  S.  Neff,  $74.80;  Miss  Mabel  Neilson,  $0.25;  Andrew  J.  Nellis,  $38.45; 
Martin  Newman,  $14.09;  Benjamin  New,  $78.50;  Mrs.  E.  Nichols,  $42.00;  Jno.  Noble, 
$10.78;  Jas.  Northorp,  $9.92;  William  Noyes,  $17.20:  William  Nye,  $00.57;  Clias.  Oakley, 
$100.90;  lluo-li  J.  O'Brien,  $12.84;  Edward  0"C(.nnor,  $122.55;  Allen  H.  Oliver,  $11.81; 
Mrs.  Maggie  O'Neill,  $22.24;  W.  S.  Osborii.  $88.49;  E.  G.  Osgood,  $52.14;  C.  N.  Palmer, 
$50.00;  Frank  W.  Page,  $57.31:  O.  W.  Perry,  $07.80;  D.  E.  Parsons,  $40.25;  S.  P.  Patton, 
$11.40;  Irving  A.  Penny,  $25.30;  Cluis.  C.  Quick,  $39.73;  Jno.  V.  Eedmoml,  $25.21:  Jayson 
Rumniel,  $27.75:  Walter  Reynolds.  $120.25:  C.  11.  IJeniington,  $51.10;  Valentine  Eess, 
$27.10. 

S  TO  Z  S.\LES  Ledger.  Wni.  Sassaman,  $14.00:  Miss  Susan  Smythe,  $14.84;  Geo.  N. 
Smith,  $28.50;  Paul  Scull.  $14.00;  Martin  Schneider,  $28.50;  Jno.  Stalder,  $13.50:  W.  E. 
Schermerhorn,  $22.85;  Miss  Frances  M.  Sehreier,  $08.45;  Miss  Anna  K.  Seager,  $53.29; 
Walter  Shearer,  $79.05;  Jno.  M.  Small,  $35.28;  Hiram  Simpson,  $10.90;  Albert  Spare, 
$61.72;  Miss  Anna  Sj)encer,  $46.80;  Benjamin  Spring,  $52.55;  Paul  Steele,  $50.45:  Walter 
W.  Stern,  $02.60;  J.  J.  Sweeney,  $22.90:  Miss  Lulu  Tate,  $18.72;  Morris  Thatcher,  $191.17; 
Benton  Thomas,  $25.75;  Fred.  W.  Townsend,  $24.25;  Jno.  M.  Utz,  $45.7ii;  Win.  Vander- 
pool,  $14.83;  Joseph  Vernan,  $24.05;  Frank  Vick,  $19.70;  Harvey  Vincent,  $12.64;  Ira  P. 
Wetzel,  $22.81;  H.  J.  Walker,  $8.72;  C.  C.  Waite,  $13.85;  Mrs.  Emma  V\^allace,  $54.64; 
W.  W.  Watkins,  $40.05;  H.  H.  Watterson,  $21.55;  A.  A.  Weaver,  $30.90;  Jos.  A.  Webster, 
$48.26;  A.  C.  Yates,  $40.02;  Wm.  Young,  $27.95;  Jno.  M.  Ziegler,  $23.60;  Herman  Zumm, 
$22.65. 

Compare  the  footings  of  the  various  abstracts  with  the  balances  of  the  respective  accounts 
m  the  General  Ledger.  If  found  to  agree  you  will  file  the  abstracts  in  the  General  Book- 
keeper's file  and  take  a  trial  balance  of  the  General  Ledger.  Present  it  for  approval  when 
finished. 

Clel•k^s'  Time.  Transfer  the  clerks'  numbers  and  names  to  i)ages  20  and  21  of  the  Pay 
Roll.  Preparatory  to  ascertaining  the  liability  inventories  you  will  enter  the  time  of  the 
clerks  as  listed  below,  and  ascertain  the  amount  due  them.  The  time  given  is  the  actual 
time;  in  entering  it  the  student  is  to  double  it  for  Saturday  and  Sunday.  Rule  a  Total 
Time  column  and  an  Amount  column  under  the  Remarks  division  of  the  Pay  Roll.  As  the 
jclerks  are  not  paid  at  this  time  (the  object  being  to  ascertain  what  is  due  them)  you  will 
extend  the  total  time  in  red  ink,  to  the  column  you  have  ruled  for  that  purpose.  Likewise 
you  will  ascertain  what  is  due  them  and  record  it  in  red  ink.  In  extending  the  department 
managers'  time,  give  them  credit  for  regular  time  (one  day)  only.  As  no  dcdui'tion  is  made 
for  time  they  lose,  no  pay  is  allowed  for  extra  time. 

SATURU.A.Y,  July  4.  Clerks  1,  3,  5,  11,  12,  25,  29,  31,  34,  .50,  5S,  75,  70,  82,  84,  100, 
101,  104,  109,  111,  114,  119  worked  full  time.  Clerks  2,  0  and  53  each  worked  l\  days. 
Clerks  32,  56,  108,  and  117  each  worked  ^  day. 

Sunday,  July  5.  Clerks  1,  4,  8,  9,  11,  12,  25,  29,  31,  34,  50,  53,  55,  58,  6U,  75,  79, 
100.  105,  106,  107,  109  and  119  worked  full  time.  Clerks  76,  84,  101  and  111  each  worked 
*  day.     Clerk  82  worked  1^  days.     Clerk  114  worked  f  of  a  day.     Clork  1 17  worked  U  days. 

Monday,  July  6.     All  of  the  clerks  worked  full  time. 

Go  over  your  calculations  a  second  time.     Foot  the  amount  column  of  each  department. 


158 


OFFICE    ROUTINi;    AND    BOOKKEEPING. 


Liability  Iiivciititrics.  To  iisoL-rtaiu  ilif  lU'cuascd  i>iirtiier's  interest  it  will  be  neces- 
surv  to  take  into  consideration  tlie  lialiili/i/,  as  well  as,  tlie  resource  inventories.  The  liabil- 
ity inventories  for  this  business  are  listed  in  the  form  given  below.  Make  an  abstract  of 
inventories  in  your  Journal,  supplying  all  amounts  not  given  in  the  illustration. 

Ahstract  of  Ixvkstokies,  Jl'ly  6.  189-. 


LlAIllMTIKS. 

Shoes,    wages  tiue,  per  Pay  Roll, 
(iloves,  "  "  " 

Huts, 

Dress  Goods,"  "  •' 

CMolhing,         ■•  '■  " 

Expense,  salaries  due  parlncrs  (i  month  eacli), 
"  '•     booJikeepL-rs,     " 

salary  due  student  (4  days), 

Hksoukces. 

Shoes,  per  inveulory  sheets, 

Gloves,  "  " 

Hals, 

Dress  Goods,     "  " 

Clothing, 

Fixtures,  cost  or  investment  value. 

Advertisinsj,  J  of  one  moiuhs  advertisinir  not  used, 

Expense,  I  of  one  mouth's  rent  not  used, 


12791 
170U7 
14326 
9912 
11475 


73 
48 
39 
53 
49 


You  will  next  write  the  amounts  of  the  inventories  in  the  proper  ledger  accounts  in  red 
ink.      l'>e  sure  to  enter  the  liahility  inventories  to  the  debit  of  the  accounts. 

3Iake  u  Balance  Sheet  and  have  it  apjiroved. 

Close  the  accounts  showing  losses  and  gains.  Bring  down  the  inventories.  Liability 
inventories  should  api)ear  on  the  credit  side  of  accounts  when  brought  down. 

Present  all  books  and  documents  for  inspection. 

The  deceased  partner's  interest  has  been  paid  as  agreed.  Make  the  entry  on  the  proi)er 
detailed  statement,  on  the  Cashier's  Abstract  Statement  and  in  the  Abstract  Cash  Account. 
Li  the  Journal  debit  him  for  the  discount  and  credit  Loss  &  Gain.  Post  the  entries 
just  made.  By  this  transaction  the  surviving  partners  have  secured  control  of  the  entire 
business.  Are  their  interests  greater  or  less  than  they  were  before  the  decease  of  the  part- 
ner?    If  greater,  how  much?     If  less,  how  much?     Explain  how  you  arrived  at  your  result. 

Write  a  credit  memorandum  on  a  blank  sheet  of  ])aper  favor  of  Mrs.  Sarah  Levy  for  the 
salary  due  Abraham  Levy,  making  it  ])ayable  Aug.  1. 

NoTK. — In  business  it  would  either  be  necessary  to  draw  up  a  new  partnership  agreement,  or  it  would 
be  necessary  to  amend  the  present  partnership  agreement  by  slating  that  one  of  the  partners  had  died  and 
that  a  new  ivutnership  had  been  formed  in  which  the  rights  and  privileges  of  the  surviving  partners  aie 
the  same  as  those  spe('ifiod  in  the  original  agreement. 

Notice  of  the  dissolution,  and  the  formation  of  a  new  partnership  should  also  be  given.  Tlie  method 
and  form  of  giving  notice  are  explained  on  page  86. 

Your  work  of  oi)ening  the  books  and  adjusting  the  partnershiii  interests  is  now  com- 
j)leted  and  vim  are  su|>posed  to  turn  over  the  books  to  ilr.  Harvey  Luinan,  who  is  to  be  the 
l)ermanent  General  Bookkeei)er.  Iteiuler  the  firm  a  bill  for  your  services,  using  a  blank 
sheet  of  paper. 


OFFICE    ROUTINE    AND    BOOK  KEEPING. 


159 


MANUFACTURING    BUSINESS 

(Jlove  Miiimfacturillg  Plant  Piirdiased.  The  glove  manuf;icturini,'  plant  owned  by 
J.  B.  Lucke\'  has  been  purchased  by  tlie  surviving  members  of  the  firm  of  J.  A.  Lunian  & 
Co.  Mr.  Luckey  has  decided  to  retire  from  business  and  has  sold  the  i>lant,  for  $100,000, 
which  is  considerably  less  than  the  inventory  value,  as  may  be  seen  by  consulting  the  expert 
accountant's  report  on  page  165.  Each  of  the  partners  has  contributed  $25,000  from  his 
private  funds  to  pay  for  the  glove  plant,  and  it  is  to  be  conducted  independently  of  the 
department  store  business.  You  are  retained  to  open  the  books  for  the  manufacturing  busi- 
ness and  to  conduct  them  for  a  time  after  business  hours. 

Owing  to  the  advantages  of  an  incorporated  business  over  a  business  conducted  by  a 
partnership  the  members  of  the  firm  have  decided  to  incorporate  the  glove  manufaciuring 
business  under  the  style  and  title  of  the  Luman  Glove  Company  (incorporated),  beginning 
August  1.  In  the  meantime  the  business  is  to  be  conducted  by  a  temporary  partnership, 
known  as  the  Lunian  Glove  Company  (not  incorporated). 

Object  of  tliis  Business.  The  object  of  this  business  is  to  familiarize  the  student 
with  the  forms  of  books  sjiecially  adapted  to  a  manufacturing  business  and  the  method  of 
keeping  them. 

Books  and  Forms.  Some  of  the  special  books  and  forms  that  may  be  used  to  advan- 
tage in  a  glove  manufacturing  business  are:  Cost  Book,  Order  Sheets,  Cutters  Stock  Book 
and  Stock  Tickets.  The  other  books  used  are  the  Impression  Sales  Book,  Monthly  Pay 
Roll,  and  a  special  column  Cash  Book;  these  may  be  used  in  any  line  of  business.  Separate 
accounts  are  also  kept  with  the  items  that  enter  into  the  cost  of  mercliandise,  and  the  l)al- 
ances  of  such  accounts  are  transferred  to  the  debit  of  the  Merchandise  account  at  the  time 
of  closing  the  books. 

Cost  of  Manufacturing.  The  question  of  greatest  importance  to  the  manufacturer  is: 
What  will  it  cost  to  manufacture  a  commodity?  Formerly  when  there  was  little  competition 
in  the  manufacturing  business  it  was  sufficient  to  arrive  at  the  cost  by  a  rough  estimate.  In 
these  days  of  close  competition  it  has  become  necessary  to  ascertain,  as  nearly  as  possible, 
the  exact  cost  of  an  article,  so  that  it  may  be  jdaced  on  the  market  at  the  lowest  possible 

Merchakdise. 


189 

189. 

Raw  material, 

June 

30 

.34237 

.50 

12075 

80 

July 

31 

980  doz.  sold. 

Freight  &  Cartage, 

1404 

00 

5;soi 

25 

Aug. 

31 

795    '• 

Bands,  Boxes  &  Cases, 

1404 

00 

28-'0 

75 

Sept. 

30 

380    " 

Silk, 

1778 

40 

2630 

25 

Oct. 

31 

310     '■ 

Buttons, 

468 

00 

2616 

48 

Nov. 

30 

■iH)    " 

Labor, 

2218:J 

20 

2131 

50 

Dec. 

31 

295    " 

Salaries, 

308H 

80 

2280 

40 

Jan. 

31 

291     " 

Manuf'g  E.xpenses, 

2116 

80 

13987 

50 

Feb. 

28 

1595    " 

Traveliug 

1872 

00 

16548 

75 

Mar. 

31 

1701     ■•        " 

Discounts  allowed, 

249 

85 

14789 

45 

Apr. 

30 

1.587    " 

fyOss  it  Gain, 

35009 

10 

12860 

7940 

91 

773G 

41 
84 
87 

May 
June 

31 
3 

1160    " 
671     "       " 
Di.scoiints  received. 
Incentwy  (III4  doz.) 

103801 

65 

10:^S01 

65 

1 

160 


OFFICE    ROUTINE    AM> 


''KKEEI'ING. 


price  and  still  yield  the  desired  jicrcent.  of  jjrolit.  These  conditions  have  led  manufacturers 
to  seek  the  cheajiest  markets  in  which  to  purchase  raw  materials,  to  lessen  the  cost  of  produc- 
tion by  the  introduction  of  labor-saving  machinery,  and  to  keep  separate,  detailed  accounts 
with  all  items  that  enter  into  the  cost  of  manufacturing  their  products. 

In  the  Merchandise  account  illustrated  on  page  159  the  sales  appear  on  the  credit  side  of 
the  account,  while  on  the  debit  side  appear  the  balances  of  the  various  accounts,  the  items  of 
which  enter  into  the  cost  of  manufacturing  the  merchandise.  In  business  detailed  informa- 
tion of  such  items  would  be  obtained  by  consulting  the  accounts  with  the  items.  In  the 
glove  manufacturing  business  this  detailed  information  of  the  preceding  years  is  used  as  a 
basis  on  which  to  calculate  the  cost  of  producing  the  various  articles  for  the  succeeding 
vears. 


Cost  |{«i(»k.  i'he  j)urpose  of  a  Cost  Book  in  a  manufacturing  business  is  to  furnish  a 
detailed  record  of  the  cost  of  manufacturing  the  various  commodities.  In  the  glove  manu- 
facturing business  it  is  customary  to  designate  the  various  styles  of  gloves  by  number. 
In  the  illustration  of  the  Cost  Book  below  a  "men's  unlined,  outseam  glove"  is  desig- 
nated as  No.  112G.  It  will  be  observed  that  the  cost  of  this  style  of  glove  is  recorded  for 
eight  consecutive  years;  in  business  this  record  may  be  extended  for  as  many  3-cars  as  the 
glove  is  being  manufactured.  By  dividing  the  cost  of  the  various  items  on  the  debit  side  of 
tiic  illustrated  Merchandise  account  by  the  number  of  dozens  sold,  the  cost  of  manufacturing 
No.  112G  for  the  3'ear  189'J  will  be  found  to  be  the  same  as  that  exhibited  in  the  illustration 
of  the  Cost  Book.  In  ascertaining  the  cost  of  the  raw  material  and  labor  for  any  style  of 
glove,  the  number  of  dozens  manufactured  must  be  divided  into  the  cost  of  the  raw  material 
and  labor,  and  not  the  number  of  dozens  sold.  A  similar  record  of  all  the  other  styles  of 
gloves  to  be  manufactured  should  be  kept  in  the  Cost  Book.  In  some  lines  of  business  it  is 
an  advantage  to  use  loose  Cost  Sheets  instead  of  a  Cost  Book.  Cost  Books  or  Cost  Siieets 
are  designed  and  ruled  differently,  to  meet  the  vequiremeuts  of  the  business  in  which  they 
are  used. 


Cost  Book. 


Slock  No.  11S6. 


I)(  srnptioii.  3fen'»  unlih 


:  HI  gloK. 


Haw  MnliTJal, 
Lal)()r,  Cutting. 

"       Milking, 

"       Silking, 
Freight  &  Cartage, 
Boxes,  cic.. 
Silk  &  Til  read. 
Buttons, 
Salaries, 

Manufaclnring  Expenses, 
Traveling  " 


Profit,  20?  on  cost, 
Interest.  H  ino   on  cost, 
Discount,  V>%  on  sales, 
Losses.       2%  " 


Selling  Price, 


1892. 

18(0. 

l.siu. 

ISSt.j. 

18SW. 

1897. 

l(>a8. 

1899. 

4.7.5 

4.20 

4.43 

3.70 

4.05 

:!  r.i} 

3.45 

3.30 

1.10 

110 

1  12 

1.06 

l.Ui 

.  11", 

1.08 

1.06 

.92 

1.05 

1.03 

1.00 

1.00 

M'l 

.90 

.90 

.36 

.40 

.44 

.45 

.40 

.41 

.40 

.41 

.17 

.15 

.18 

.14 

.15 

.15 

.16 

.15 

.16 

.16 

.15 

.15 

.17 

.15 

.16 

.15 

.23 

.20 

.20 

.18 

.18 

.19 

.18 

.19 

.05 

.05 

.06 

.05 

.05 

.05 

.a5 

.05 

.37 

.42 

.39 

.34 

.34 

.34 

.34 

.33 

.17 

.18 

.14 

.15 

.14 

.14 

.13 

.13 

.25 

.25 

.22 

.20 

.21 

.20 

.20 

.20 

8  53 

8.16 

8.30 

7.42 

7.79 

7.23 

7.05 

6.87 

1.71 

1.63 

1.67 

1.48 

1.56 

1.45 

1.41 

1.37 

.34 

.33 

.33 

.30 

.31 

.29 

.28 

.27 

.69 

.66 

.67 

,60 

.63 

.58 

.57 

.56 

.23 

.22 

.22 

.20 

.21 

.20 

.19 

.18 

11  .50 

11.00 

11.25 

1 

10.00 

10.  .50 

9.75 

9.50 

9.25 

DKKICK    ROUTINE    AND    BOOK  KEKl'I  XC. 


161 


Order  Sheets.  In  this  business  Order  Sheets  similar  to  tlie  one  illustnited  below 
will  be  used.  When  an  order  is  received  that  is  not  to  bo  filled  immediately,  a  detailed 
record  is  made  on  an  Order  Sheet,  which  includes  the  serial  number  of  the  order,  the  name 
and  address  of  the  person  or  firm  ordering,  the  terms,  shipping  directions,  date  of  order, 
the  kinds  of  goods  ordered  and  the  number  of  dozens  of  each  kind.  These  sheets  are  kept 
in  consecutive  order,  usually  in  a  binder,  and  are  indexed.  When  a  j>art  of  the  goods  are 
shipped, 'they  are  deducted  from  the  order  when  the  bill  is  rendered.  When  all  the  goods 
belonging  to  an  order  have  been  sent  the  Order  Sheet  is  filed  awav  for  reference. 


Order  Sheet. 
Ordered  by  James  Hare, 

Terms,  i/lO,  2/30,  net  4  months.  Address,  Chicago,  IlUnoin. 

Sliipping  Directions.     3  doz.  Samples  by  Evpress.       1-3  at  once.       Balance  Oct.  1. 


Datk. 


July 


SB, 
F 


1216 
100 

1211 

r,o 

1209 

1206 

1126 

nil 

1106 

1101 

Explana- 
tions. 

50 

75 

25 

40 

40 

20 

dozens  ordered 

3 

3 

3 

3 

3 

3 

3 

3 

Samples 

97 

47 

47 

72 

22 

37 

37 

17 

Balance 

47 

22 

22 

35 

10 

17 

17 

7 

i  of  ordec 

50 

2.i 

25 

37 

12 

20 

20 

10 

Impression  Sales  Book.  The  Impression  Sales  Book  is  a  book  made  of  fine  tissue 
paper,  and  is  similar  lu  many  respects  to  the  Impression  Account  Sales  Book  described  and 
illustrated  on  pages  101  and  102.  When  an  Impression  Sales  Book  is  used  the  bills  are 
written  up  and  an  imjjression  taken  of  them  in  this  book,  by  means  of  a  letter  press.  The 
amount  of  each  bill  is  extended  to  a  column  ruled  for  that  purpose  and  posted  to  the  Ledger. 
What  advantage  do  you  see  in  using  this  book?  As  this  book  is  very  similar  to  tiie  Impres- 
sion Account  Sales  Book  and  as  no  billing  is  to  be  done,  you  will  not  be  required  to  use  an 
Impression  Sales  Book  in  this  business. 

All  entries  are  to  be  recorded  in  a  Sales  Book  similar  in  form  to  the  one  illustrated  on 
page  162.  Study  the  form  carefully  and  note  that  all  goods  are  designated  by  number  instead 
of  writing  the  description  of  the  gloves. 

Cutters  Stock  Book.  After  an  order  for  future  delivery  is  received  and  recorded  in 
the  Order  Book  or  on  an  Order  Sheet,  it  is  also  recorded  in  the  Cutters  Stock  Book.  Usually 
this  book  is  ruled  so  that  there  is  a  division  for  each  month  of  an  entire  year.  In  the 
illustration  on  page  163  divisions  for  but  four  months  are  ruled.  Five  columns  are  ruled 
under  each  division,  the  first  to  receive  the  order  numljer,  the  second  to  receive  the  stock 
numbers  of  the  goods  ordered,  the  third  to  receive  the  number  of  dozens  ordered,  while  the 
fourth  and  fifth  are  used  to  record  the  goods  that  have  been  cut  and  sent  to  the  other 
departments  to  be  made  up.  As  goods  are  manufactured,  based  upon  orders  or  probable 
sales  for  each  season,  it  is  important  to  know  exactly  the  kind  of  goods  to  be  made  and  in 
what  months  they  are  wanted.    If  the  Cutters  Stock  Book  is  properly  ke))t  the  manufacturer 


U2 


okkice  koutike  and   bookkeei'ing. 
Sales  Book. 


SnipriNfi 

U.  F. 

KaMK  ami  AUIIUESS. 

Ck. 

Kind. 

Doz. 

Pkick. 

A.MT. 

1 

Makks. 

— 

R.  &  0. 

Ileywooii  &  Co  , 

1101 

5 

7 

r,\j 

..;  '.0 

1 

Ciisc 

Pbilailelphia, 

1106 

5 

1   <; 

75 

33 

75 

;17185 

117  Adams  St. 

1115 

5 

9 

50 

47 

50 

All;;.  1st.  5/30,  6/10. 

1126 

5 

8 

25 

41 

25 

1130 

."> 

10 

50 

52 

50 

D 

1206 

5 

9 

7.5 

48 

75 

1209 

.) 

12 

75 

63  1  75 

1978 

1211 

5 

18 

00 

90 

00 

1216 

5 

14 

75 

73 

75 

488 

75 

M.  D. 

Hare  &  Smith, 

1016 

3 

12 

40 

37 

20 

Case 

Chicago. 

1101 

2 

7 

50 

15 

0> 

i:i7180 

Aug.  1st.  .'5/30,  6, 10. 

1208 

2 

11 

50 

23 

00 

1216 

2 

17  00 

34 

00 

109 

20 

AmX 

Ctise 

Allen  it  Juwett, 

1101 

1 

7 

50 

7 

50 

$17187 

Helena. 

1131 

1 

12 

00 

12 

00 

H  1  R 

Alls;.  1st.  5/30,  6/10. 

1120 

1 

8  1  75 

8 

75 

nt  IT 

- 

Merchandise  Cr. 

1200 

1 

14  00 

14 

00 

42 

25 

58 

040 

20 

1 

1 

1 

will  be  able  to  kce))  liis  stock  about  equal  to  the  demand,  without  being  in  danger  of  running 
short  or  of  carrying  over  a  large  amount  of  stock  from  the  previous  season.  When  all  the 
goods  for  a  month  have  been  cut  and  made  u])  tlie  footings  of  tiie  third  and  fifth  columns 
should  be  e(|ual. 

'I'lie  object  of  the  Slock  Tickets  is  to  keep  track  of  the  goods  while 
Sujipose  that  100  dozens  of  any  one  style  are  cut,  that  number  sliould 


Stock  Tickets. 

being  mauufacttired. 


Cutters  Stock   Book — Hk(iixnin"o  June  189 


.IL'.NK 

J0LY. 

Al'tiUST. 

^fcKl  t.MltKlt. 

¥ 

c 

■6 

a 

s 

c 

Kinil. 
Doz. 

•u 

£ 

N 

0 

O 

ti 

ti 

5 

1 

C  1 

1 

a 

N 

1 

1216 

50 

1216 

100 

2 

920  75 

916 

1] 

941 

50 

953 

1 
50 

9 

916 

15 

1206 

50 

1211 

50 

1206 

50 

1100  50 

953 

i:. 

952 

50 

1100 

25 

941 

15 

1100 

20 

1209 

no 

1211 

75 

1106  50 

1216 

25 

953 

50 

1206 

35 

953 

15 

941 

25 

120(! 

25 

;  916 

25 

1216  25 

917 

75 

1100 

.50 

941 

25 

1100 

10 

1216 

50 

1126 

25 

1  926 

25 

.5 

916  75 

926 

25 

7 

1106 

10 

952 

75 

10 

1211 

.50 

1211 

75 

8 

1206 

75 

1209 

100 

917,  25 

1100 

50 

12(16 

10 

1216 

25 

1216 

50 

953 

30 

12()» 

75 

1206 

50 

926  25 

1210 

25 

1211 

10 

1211 

25 

12 

941 

25 

1106 

25 

1211 

50 

917 

25 

953  25 

917 

50 

1216 

10 

936 

25 

953 

25 

1209 

50 

1216 

50 

941 

25 

8 

917  100 

926 

100 

10 

1211 

50 

1126 

15 

lUlO 

10 

1101 

25 

5 

inc. 

25 

1100 

25 

926)100 

1106 

75 

1216 

50 

916 

50 

1126 

10 

1211 

25 

917 

25 

953 

50 

1100 

25 

953 

10 

11 

936 

25 

941 

50 

1206 

50 

953 

10 

926 

25 

952 

25 

1100 

25 

1100 

25 

94) 

25 

1216 

25 

13 

1209 

7.5 

953 

25 

11 '.'6 

25 

1216 

25 

926 

75 

952 

25 

917 

50 

1211 

.  > 

6 

941 

25 

1209 

25 

tsi 

910 

50 

1126 

25 

1211 

35 

1216 

.'III 

9.52 

25 

1211 

25 

OS 

1206 

25 

1106 

10 

1101 

50 

953 

25 

lino 

13 

916 

.50 

917 

25 

1106 

25 

1100 

25  1 

1 

:>i: 

75 

1 

1 

B4S 

OFFICK     ROUTINE     AND     BOOK  K  KK  I'l  XC. 


l('.;5 


pass  tlirougli  the  inaking  depurtuionts,  iiiid  when  fliiished,  be  delivered  to  the  salesrooms. 
If  a  less  number  is  delivered  to  the  salesrooms  an  investigation  is  made  and  the  loss  traced 
to  the  proper  department.  Without  some  such  record  il  would  be  |i(>,---silile  for  dishonest 
employees  to  carry  away  stock  without  being  detected. 

Pay  Roll  Book.  The  form  of  Pay  KoU  illustrated  hclow  is  one  I  hat.  can  be  used  to 
advantage  in  any  business  where  employees  are  paid  off  monthly.  .V  column  is  provided 
to  receive  the  amounts  paid  employees  on  account.  Tliis  form  <if  I'ay  Roll  eontemidates 
that  a  detailed  record  of  the  employees'  time,  in  the  different  departuunits,  be  kept  in  eacli 
foreman's  Time  Book,  aiul  that  only  the  total  amount  due  each  employee  Ije  carried  to  the 
Pay  Roll.  The  only  diilerenee  between  a  Pay  Roll  Book  and  a  foreman's  'I'ime  Book  is  in 
the  size,  the  latter  usually  being  pocket  size. 


Pay  Roll  Book. 


JULY. 

1 

AUGUST. 

Xamk. 

Name  of 
Foreman. 

Dep't. 

U'k. 

Amt. 

Paid. 

Bal. 

Amt. 

Paid. 

Bau 

Amanda  Connor, 

"\V.  Finch, 

Hemming, 

A 

30 

50 

10 

00 

20 

50 

31 

50 

10 

00 

21 

50 

Carrie  Lyons. 

34 

SO 

34 

80 

35 

80 

5 

00 

30 

80 

Lena  Frev, 

>Ii.ss  Eversou, 

Silking, 

B 

35 

50 

5 

00 

30 

50 

34 

60 

34 

60 

Kate  Schwartz, 

30 

70 

30 

70 

30 

75 

5 

00 

25 

75 

Nina  Eckler, 

31 

85 

0 

00 

26 

85 

30 

80 

10 

00 

20 

80 

Lizzie  Patch, 

36 

00 

36 

00 

33 

00 

33 

00 

Ernia  Price, 

Mis.s  Adams, 

Cutting, 

C 

34 

25 

10 

00 

34 

25 

34 

05 

5 

00 

29 

05 

Minnie  Dunn, 

28 

50 

28 

50 

28 

50 

28 

50 

Wm.  Stump, 

31 

35 

31 

35 

30 

25 

30 

25 

,Tos.  Helm, 

11.  Ward, 

Making, 

I) 

37 

75 

5 

00 

32 

75 

31 

70 

5 

00 

26 

70 

Arthur  Fulmer, 

34 

25 

34 

25 

35 

60 

35 

60 

Daniel  Brevier, 

30 

00 

30 

00 

31 

50 

31 

50 

395 

45 

35 

00 

360 

45 

388 

05 

i40 

00 

348 

05 

— 



— 

— 

— 

Cash  Book.  The  Cash  Book  used  in  this  business  is  of  the  ordinary  form  of  special 
column  Cash  Book.     {See  ilhisfratioii  on.  jxiges  WJt  and  W-'T. ) 

Journal.  The  ordinary  form  of  Journal  will  be  used  to  record  the  jnirchases  and  credit 
the  proper  departments.  If  the  purchases  are  sufficient  in  number  to  warrant  it,  an 
Abstract  Purchase  Ledger  and  a  Charges  Department  form  could  be  kept,  the  same  as  in 
the  department  store  business. 

StiKlent's  Records.  Tlie  student  will  make  his  records  from  a  description  of  the 
transactions.  H.  T.  \\  illiiuns,  the  partner  having  the  maiuigement  of  the  manufacturing 
plant  will  keeji  a  record  of  the  cash  receipts  and  payments  in  a  Petty  Cash  Book,  from 
which  vou  will  write  U])  the  regular  Ctisli  Book.  rho  entries  in  the  Petty  Cash  Book  are 
proved  each  day  with  the  amount  of  cash  on  hand  by  Mr.  Williams,  so  it  will  not  be  neces- 
sary for  you  to  jirove  the  cash.  The  balance  of  cash  on  hand  on  tlie  last,  day  of  the  month 
should  agree  with  the  amount  called  for  by  the  regular  Cash  Book. 

Petty  Cash  Book.  This  book  is  usually  a  coarse,  cheap  book  and  the  entries  in  it  are 
generally  made  in  pencil.  All  entries  in  this  book  should  be  made  by  the  person  or  persons 
handling  the  money.  Whenever  possible,  bu*"  one  person  should  be  permitted  to  receive  and 
pay  out  the  cash,  and  he  should  be  held  responsible  for  the  correc'tness  of  the  same.      Being  a 


164 


ttFKlCE    KOUTINK    AND     HOOKKEEPING. 

Cash  Book. 


Date. 

L.F. 

Namks  and  Explanations.                                         Discounts. 

Gkneral. 

June 

1 
U 

10 

15 
20 
25 
30 

Balance, 
Collier  &,  Meyer,                                   Bal.  acct.  less  5f 
Adams  «fc  Son,                                       Bal.  acct.  less  3? 
Mercliandise,                                         Barnes  &  Co. 's  Sale 
Hills  Ueceivable.                                   C.  V.  Hick's  note 
Bills  Ueceivable.                                   O.  S.  Snyder's  note 
Jones  ifc  Co.,                                          Inv.  of  1st  inst.  3? 
Bills  Payable,                                        Disct.  our  note  60  da. 
Merchandise,                                         Wilson  &  Co. 's  sale 
Badman  &  Son,                                     Inv.  of  2d  inst.  net 
Munson  Bros.                                         Inv.  of  23d  iust.  less  IO4 

Mdse,  Disct.  Dr. 
Balance, 

74 
22 

20 

47 

09 

82 

■JO 

58 

7li40 

1407 

737 

197 

|-|0 
.",ni( 

liOU 
5.50 
300 
370 

428 

81 

ei 

68 
60 
00 
00 
7S 
00 
00 
50 
22 

lfi5 

21 

13252 

20 

June 

30 

7755 

40 

book  of  original  entry,  great  care  should  be  exercised  in  keeping  tlie  Petty  Cash  Hook,  as  it  takes 
precedence  over  the  regular  Cash  Rook  when  brouglit  into  court  as  evidence.  The  entries  in 
the  regular  Cash  Book  are  generally  made  but  once  a  day;  they  are  taken  from  the  Petty  Gasli 
Book  and  from  the  stubs  of  the  Check  Book.  As  no  Check  Book  is  kept  in  this  business,  Mr. 
Williams  will  keep  a  memorandum  account  with  the  bank,  charging  it  with  all  deposits  and 
crediting  it  with  all  checks  drawn.  In  this  case  all  checks  received  and  issued  will  be  entered 
in  the  Petty  Cash  Book;  ordinarily  this  is  not  done  in  business. 

Mill  A(rc<niilt.  In  business  it  is  customary  to  keep  an  account  with  the  Mill  or  Tanning 
Dci)artnu'nt,  to  determine  if  it  is  a  paying  investment.  In  that  event  Mill  account  is  debited 
for  all  that  it  receives  in  the  way  of  labor  and  chemicals  needed  in  tanning  and  dressing  the 
raw  hides  into  glove  leather,  and  is  credited  for  the  market  value  of  all  Icatlier  that  it  pro- 
duces. If  the  cost  of  running  the  Mill  is  more  than  the  market  value  of  the  leather  i)roduced, 
it  would  not  be  a  paying  investment  and  would  be  discontinued,  as  it  would  be  cbcajier  to  pur- 
chase the  leather  already  dressed.  As  the  Mill  account  would  be  kept  very  similar  to  a  Brancli 
Store  account,  the  student  is  not  refptired  to  keep  a  separate  account  with  the  Mill  in  this 
business. 

Division  of  Labor.  The  use  of  more  than  one  Ledger  in  a  business  jiresupposee  a 
division  of  labor  among  several  bookkeepers.  The  method  of  keeping  a  General  Ledger  and 
several  sub-ledgers  has  been  fully  e.\plained,  consequently  in  this  business  but  one  Ledger  will 


office   routine   and   bookkeeping.. 
Cash  Book. 


165 


Date. 

L.F. 

Names  and  Exi'i.anations. 

DiSCTS. 

Genf.kai,. 

E.VPENSE. 

June 

1 

2  tons  coal  10.00     Cleaning  office  4.75 

14 

75 

Labor                                Adv.  E.  Jones 

12 

00 

Salary  Acct.                     Adv.  J.  Lyou,  Sui)t. 

25 

00 

f) 

Office  books  10.00     Pens  and  ink  .50 

10 

50 

Bower  &  Co.                    Inv.  No.  11,  May  1st,  tk.  No.  1 

fiO 

03 

1311 

47 

10 

Labor                                Adv.  W.  Adams 

7 

50 

13 

Office  chairs  12.00     Laundry  .40 
Gas  bill  7.51     Stationery  1.50 

21 

40 

Elbe  Erb  &  Co.               Inv.  No.  19,  June  1,  ck.  No.  2 

48 

53 

921 

97 

A.  F.  Peck                       Inv.  No.  20,      ■     1,  ck.  No.  3 

470 

50 

15 

Discount                           On  disct.  note 

5 

50 

20 

Bill  for  repairing  water  pipes  29.50     Postagel.  20 

30 

70 

Johnson  Bro«.                  Inv.  No.  21,  June  2d.  ck.  No. 4 

58 

73 

1115 

77 

Allen  &  Tidd                   Inv.  No.  28,  June  3d,  ck.  No.  5 

19 

04 

361 

71 

Interest                             On  note  due  to-day 

3 

75 

25 

Bills  Pavable                   Note  due  today  ck.  No.  (i 
Water  tax  18.23          Telegram  .50 

500 

00 

13 

73 

30 

Labor  Acct.                    Bal.  of  Pay  Roll 
Salary  Acct.                     Bal.  due  Supt. 
Freiglit  and  Cartage        Bill  for  Month 

475 
75 
15 

30 
00 

25 

J.  B.  Luckey                    Private  use 

Mdse.  Disct.  Cr. 

Expense                            For  month 

33 

100 

00 

195 

5400 
96 

72 
08 

96 

08 

„  ,                           Tnsnfe      \    505.J0 

7755 

40 

13252 

20 

be  used.  This  will  enable  the  student  to  concentrate  his  attention  on  the  features  that  are 
special  to  the  manufacturing  business.  It  must  be  remembered,  however,  that  it  is  custom- 
ary and  necessary  to  keeji  more  than  one  Ledger  in  large  manufacturing  establishments. 


July 


189- 


1).  T.  Paterson,  the  expert  accountant  engaged  by  the  partners,  to  investigate  the  standing 
of  the  glove  nuinufacturing  plant  owned  by  J.  B.  Luckey  rejiorts  as  follows: 


(Yoiu-  place  here.) 


.luly  ().  189- 


MeSSKS.    J.    A.    LUMAN   &   Co., 

Propi-ietors  City  De/itirtment  jS'tocf,    CUy- 

Gentlemen; 

Herewith  I  hand  you  the  report  of  ray  investigation  of  the  books  of  record  and  financial  standing  of  the 
glove  manufacturing  plant,  owned  and  for  forty-five  years  conducted  by  J.  B.  Luckey. 

1.  After  a  careful  research  among  the  records  of  this  (your)  County,  I  am  assured  that  J.  B.  Luckey 
is  the  legal  owner  of  the  said  glove  plant.  There  are  no  incumberances  of  any  kind  on  record,  consequently 
he  is  able  to  sell  and  give  good  title  to  the  purchasers.  Taxes  of  every  description  have  been  paid,  as  is 
evidenced  by  the  tax  receipts  submitted  herewith. 

2.  Inquiries  have  been  made  of  all  former  creditors  as  shown  by  the  books,  and  their  replies  submitted 
herewith  are  evidence  that  all  obligations  of  every  description  have  been  discharged. 


i(w; 


OK  KICK     ROUTINE    AND    UOOKKEEl'ING. 


3.  Adveriii^fniciits  were  inscrlod  iu  llie  duily  papers  in  which  all  creiiitors  were  requested  to  present 
their  claims  for  payment.  No  claims,  other  than  those  credited  on  the  books  were  presented;  and  all  pre- 
sented were  paid. 

4.  The  niarktl  value  of  the  merchandise  on  hand  is  found  to  be  |.7o36.40.  (See  Inventory  submitted 
hercwitli.)  Tlie  nuicliinery,  after  considering  tlie  first  cost,  repairs,  wear  and  tear,  and  the  decline  in  tlie 
price  of  macliiiiiry,  1  lind  (by  estimation)  to  be  worth  f  44S18.20.  Tlie  real  estate  is  inventoried  on  the  books  at 
$32000,  whicli  amount  I  consider  it  to  be  wortli.  Furniture  and  fi.Mures  are  inventoried  at  |400  and  are 
prol)ably  worth  more.  Accounts  Ueceivable,  or  amounts  duefrom  others,  are  as  follows:  Ileywood  &  Co., 
|!4280;  U.  S.  Thomas,  $2242.40.  Judging  from  their  past  records  and  tlieir  present  financial  circumstances, 
as  reported  by  the  commercial  agencies,  these  accounts  will  be  paid  in  full  as  soon  as  due.  Their  replies  to 
my  letters  written  to  them  certify  that  the  claims  are  just  and  that  it  is  their  intention  to  honor  them. 

5.  Taking  into  consideration  the  fact  that  this  plant  has  been  in  successful  operation  for  forty-five  years, 
that  its  business  has  steadily  increased,  that  all  its  obligations  have  been  honestly  discharged,  and  that  the 
yearly  .«aU-s  have  averaged  fully  $75000  in  the  past  fifteen  years.  I  estimate  the  Good  Will  to  be  worth  $30000. 

6.  The  actual  inventory  value  of  the  plant  is  tlius  found  to  be  $91277;  the  value  of  the  Good  Will  added 
to  this  makes  the  plant  worth  $121277. 

Respectfully  .■iubmitled, 

D.    T.    Pateiison. 


Tlic  above  report  meets  with  the  partners'  approval.  Tlie  amount  asked  by  Mr.  Liickey  is 
$100000,  of  which  cacli  of  the  jiartiiors  lias  jiaiil  one  fourtli.  ilakc  the  entry  in  the  Journal, 
debiting  Merchandise,  Machinery,  Keal  Estate,  Furniture  and  Fixtures,  Heywood  &  Co.,  and 
U.  S.  Thomas  for  the  amounts  named  in  the  accountant's  report.  Debit  Good  Will  for  the 
(iilTcrence  between  tlie  net  value  of  the  assets  and  the  jirice  paid.  Credit  each  of  the  partners 
for  his  share.  For  entry  of  u  similar  nature  see  page  87.  Open  the  above  accounts  as  indicated 
iu  the  index  printed  on  the  cover  pages  of  the  Ledger.     Post  and  check  over  your  posting. 

Mr.  II.  T.  AVilliams  is  to  be  the  manager  at  a  salary  of  §150  per  month.  With  the 
exception  of  the  bookkeeper,  all  of  the  former  employees  of  J.  15.  Luckey  have  been  retained. 
The  names  of  the  emjiloyees  will  be  handed  in  by  the  foremen  of  the  diflereiit  departments  at 
the  end  of  the  montli.  Wni.  Cknid,  the  supcriutendeut  of  the  Mill  is  to  receive  a  salary  of 
^loOO  per  year;  John  Hermann,  tlie  traveling  rojiresentative  is  to  receive  a  salary  of  $100  )H'r 
month,  and  Jas.  Mackey,  the  shipjiing  clerk  is  to  receive  a  salary  of  $40  per  montii. 

The  partners  have  withdrawn  $5000  from  the  department  store  business  to  be  used  in  con- 
ducting the  glove  manufacturing  business.  Tiiis  amount  is  borrowed  from  J.  A.  Luman  & 
Co.,  but  you  arc  not  to  make  tlie  entry  now  as  ilr.  Williams  has  made  a  record  of  it  in  the 
Petty  Cash  Book,  fnnii  which  bonk  it  will  be  transferred  to  the  regular  Cash  Book. 

The  kind  of  gloves  to  be  jilaced  on  the  market  arc  specified  by  numbers  in  the  following 
price  list: 


No. 


5110 
917 
926 
931 


Silhnif 
I'riee. 

Cost 
Price. 

$7.50 
6.75 
7.25 
5.25 

$5.57 
5.02 
5.39 
3.91 

Xo. 


SellinK- 
I'liee. 


936  !  $35  00 

941  33  50 

952  14.50 

953  15.75 


,f>.»^'            No. 
Priee. 

Sellmjr 
Price. 

Cost 
Price. 

Xo. 

Sollin»r 
Priee. 

$25  92         1101 
24  81          1106 
10.75         1111 
11  68         1126 

$9.50 
8.75 
7  75 
9.25 

$7.05 
6  50 
5.76 
6  87 

1206 
1209 
1211 
1216 

$9.75 
12.75 
11.50 
17.00 

Cost 
Price. 


$7.24 
9.46 
8.53 

12.60 


The  cost  and  selling  jirices  of  the  various  numbers  on  sale  were  ascertained  as  shown  in  the 
illustrations  and  exjilanations  of  the  Cost  Book  and  Jlerchandise  account.  {Sec  j)a<jcs  159 
and  IHO).  Make  a  detailed  analysis  of  the  cost  of  Xo.  ll'-JC  so  that  you  will  understand  how 
the  cost  and  selling  prices  are  ascertained.  Your  teacher  will  assist  you,  if  you  are  unable  to 
make  the  calculations.  In  business  this  work  is  usually  done  by  the  superintendent  of  the 
plant,  or  liy  the  bookkeeper  under  his  direction. 


OKFICE    ROUTINE    Ai\M)     1!()()K  KEEPING. 


167 


The  inventor}'  of  nicrcluinili.se  submitted  by  tlie  exi)ert  :icci)inil,:int  is  as  follows: 

Merchandise  Inventory. 


30  ilozens, 

No. 

1216, 

40  dozens, 

No. 

1211. 

30  dozens, 

No. 

1209. 

70  dozens. 

No. 

120(1. 

70  dozens. 

No. 

1126, 

70  dozens. 

No. 

1111. 

70  dozens, 

No. 

1106, 

75  dozens, 

No. 

916. 

75  dozens. 

No. 

917, 

75  dozens. 

No. 

926, 

300  dozens. 

No. 

931, 

20  dozens 

No. 

936, 

20  dozens. 

No. 

941, 

50  dozens. 

No. 

952, 

40  dozens, 

N.i. 

953, 

89  dozens 

(odd 

and  broken). 

worth 

13.60 

8.53 

9.46 

7.24 

6.87 

5.76 

6.50 

5.57 

5.02 

5.39 

3.91 

25.93 

24.81 

10.75 

11.68 


378 

00 

341 

30 

189 

20 

506 

80 

480 

90 

403 

30 

4,55 

00 

417 

75 

376 

50 

401 

25 

1173 

00 

518 

40 

496 

30 

537 

50 

467 

30 

391 

30 



7536 

40 


Piin.,\DEi,pni.\,  Pa.,  .July  0,  189- 


One  oriler  has  been  received  which  reads  as  follows: 

Mr.  .T.  B.  Luckkt, 

(your  place  here.) 
Dear  Sir; 

Please  deliver  the  following  winter  goods  as  per  directions  given  below  at  the  prices  named  in  your 

annual  quotations. 

100  dozens.  No.  131C;  50  dozens.  No.  1211;  24  dozens.  No.  1209;  24  dozens.  No.  1126. 

Kindly  ship  one-half  of  this  order  during  the  present  month  and  the  remainder  on  or  before  Sept.  1. 


Express  sample  dozens  at  once. 


Very  truly. 


Heywood  &  Co. 


This  order  meets  with  tlie  apjirovtil  of  the  linn,  and  the}-  have  written  Heywood  &  Co., 
telling  them  that  their  order  will  receive  prompt  attention.  They  have  also  notified  them 
of  the  change  in  the  proprietorship  of  the  glove  jilant.  Enter  the  order  on  an  Order  Blank, 
following  the  directions  given  on  page  161.  This  order  is  to  be  designated  as  number  1. 
The  terms  of  this  order  are  the  regular  terms:  6/10,  5/30,  net  4  mos.  In  business  these 
orders  would  be  filed  in  consecutive  order;  in  this  business  you  may  keep  the  Order  Sheets 
between  the  pages  of  one  of  your  blank  books.  If  a  Cutters  Stock  Book  were  kept  this 
order  would  be  immediately  recorded  therein,  so  that  the  manuf;icture  of  the  gloves  required 
to  fill  the  order  would  begin  at  once. 

The  invoice  listed  below  lias  been  checked  with  the  goods  received  and  lias  bi'cii  audited. 
Enter  it  in  the  Journal,  debiting  Silk  account  and  crediting  the  firm  from  whom  it  was 
purchased.  Wm.  Austin  &  Son  (No.  1),  3/10,  net  30  days,  $125.00.  Write  the  explanation 
of  this  entry  as  follows:  "Invoice  No.  l.'"  lu  business  detailed  informati(jn  ot  tlie  entry 
would  be' obtained  by  referring  to  the  invoice  bearing  this  number. 

The  Petty  Cash  Book  contains  the  following  records  for  the  day;  enter  them  in  the  regular 
Cash  Book.  Be  sure  to  short-extend  the  items  to  be  charged  to  Expense  and  extend  the 
amount  to  the  Expense  column.  All  the  credit  items  given  below  are  to  be  charged  to 
Exnense. 


J.  A.  Luman  <&  Co., 
Heywood  &  Co., 


5000 
4280 


Postage,  2.00;  pens  and  ink,  .50, 

Set  of  books, 

Telegram, 

Kxpert  accountant's  charge. 


12 


100 


50 
00 
25 
00 


168 


OFFICE    KOUTIN'F.    AND    BOOKKEEPING. 


Quotations  liave  been  received  from  A.  P.  Root  &  Co.  for  25  bales  Sisal  Buckskins, 
undressed,  at  40'/  per  lb.,  F.  0.  B.  in  New  York.  Five  bales  are  in  port,  10  bales  are  due 
by  next  steamer,  and  lo  bales  arc  ready  f(jr  slii])ment  from  Soutii  America.  Order  lias  been 
placed  for  the  entire  lot  by  wire. 

Post  the  book.s  and  check  over  your  ])osting. 

.Iri.v  S,   IS!)-. 

The  gloves  on  band  as  inventoried  ou  ])age  1C7  have  been  sold  to  S.  T.  Standish,  Cleve- 
land, terms  regular,  at  an  advance  of  %"2.00  per  dozen  on  our  inventory  ])rice.  Make  the 
record  in  the  Sales  Book,  referring  to  the  illustration  on  ])agc  102. 

An  abstract  of  the  orders  received  is  given  below. 

Jas.  Ilarc,  terms  G/10,  5/30,  net  4  mos.  50  doz.,  No.  121G;  100  doz.,  No.  1120;  50  doz.. 
No.  931.  One-half  to  be  shipped  as  soon  as  possible;  the  balance  not  later  than  August  1. 
Samples  to  be  forwarded  by  express  at  once.     Enter  on  an  Order  Sheet. 

Henry  J.  Graves  Sons,  terms  0/10,  5/30,  net  4  mos.  100  doz.,  No.  1120;  100  doz..  No. 
1209.  Sliip  one-half  by  the  25tb;  remainder  in  the  month  of  August.  Sample  dozens  to 
be  sent  by  express.     Enter  on  an  Order  Sheet. 

Following  is  a  record  of  the  goods  shii)i)ed  to-day. 

Ueywood  &  Co.,  sample  dozens  sent  by  express.  {Sec  order  Xo.  1.)  Deduct  tbe  samples 
on  the  order  sheet  as  illustrated  below  and  record  them  in  the  Sales  Book  at  the  selling 
prices  given  on  page  100. 


Datk. 

S.  B.  F. 

12m. 

1311. 

^2m. 

iiai. 

Explanation. 

July 

7 
8 

1 

100 

1 

99 

50 
1 

49 

3< 

1 

24 
1 

23 

Dozens  ordered. 
Samples  per  S.  B. 

23 

Balance  to  be  delivered. 

Sample  dozens  have  also  been  sent  to  Jas.  Hare  and  to  Henry  J.  (iravcs  Sons.  Make 
the  necessary  records  on  the  Order  Sheets  and  in  the  Sales  Book. 

The  following  invoices  have  been  received,  checked  and  audited;  enter  them  in  the 
Journal.  Be  sure  to  charge  the  proper  accounts  and  to  write  a  clear  but  brief  explanation  of 
each  entry. 

A.  1'."  Hoot  &  Co.  (Xo.  2),  July  7,  Sisal  Buckskins,  3088  Iks..  ^1234.00  (Charge  Riiw 
Material  account). 

Wm.  Austin  &  Son  (No.  3,  July  7,  2/10,  net  30  days,  ^118.75  (Silk  account). 

George  Procter  (No.  4),  July  7,  net  30  days,  *29.46  (Bands  &  Bo.xes). 

The  Petty  Cash  Book  contains  the  following  records;  enter  them  in  the  regular  Cash 
Book.     Be  sure  to  make  a  record  of  the  discounts. 


Machinery  repairs, 
Expense,  broom. 

"         laiiniiry  for  office, 
Furniture  ifc  Fixtures,  desk, 
Wm.  Austin  &  Son,  less  2J, 
Traveling  Expense,  Herman, 
Expense,  sample  cases, 


0 

25 

75 

SO 

100 

00 

123 

r)0 

lii-i 

0(1 

'• 

00 

Post  and  clicck  over  your  posting. 


OFFICE    ROUTINE    .\ND     BOOKKEEPING. 


169 


July  10,  189 -. 

Shipped  oue-lialf  of  the  following  orders,  less  the  sam2)les  that  have  been  sent.  Henry 
J.  Graves  Sons,  Jas.  Hare  and  Heywood  &  Co.  Make  the  proper  records  on  the  Order 
Sheets,  then  enter  iu  the  Sales  Book. 

Note. — The  question  may  arise:  How  can  we  be  shipping  goods  when  all  the  goods  on  hand  have 
been  sent  to  S.  T.  Standish,  Cleveland?  It  must  be  remembered  that  these  goods  have  been  manufactured 
since  the  orders  were  placed  several  days  ago. 

The  Petty  Cash  Book  contains  the  following  records;  enter  them  as  previously 
instructed.  Record  the  wages  advanced  to  employees,  by  short  extending  the  items  and 
charging  Labor  for  the  total  amount,  the  same  as  given  in  the  Petty  Cash  Book. 


S.  T.  Slandish,  less  ( 


9178 

54 

Labor,  adv.     H.  N.  Peck         10.00 

Ellen  Meunier     5.00 

"       11.  Foltz              12.00 

Erma  Price          5.00 

33 

00 

Wm.  Austin  &  Son,               less  2% 

116 

37 

Post  and  check  over  your  posting. 

.July   11,   189-. 

The  following  invoices  have  been  I'cceived,  checked  and  auditecl.  Be  sure  to  charge  the 
proper  accounts  when  entering  them. 

Clarence  Stoner  (No.  5)  2/10,  net  30,  $1935.00,  (Raw  Material). 

Leroy  Davenport  (No.  6)  cash,  $12.00  (Buttons).  Record  this  invoice  iu  the  .Journal, 
so  that  an  account  with  the  party  will  appear  on  the  Ledger. 

George  Proctor  (No.  7),  $34.50  (Bands  &  Boxes). 

The  Petty  Cash  Book  contains  the  following  records:  enter  them  in  the  regular  Cash 
Book. 


R.  S.  Thomas 


2242 


40 


Leroy  Davenport 

Expense,  advertising 

E.xpense,  postage  2.00,  stationery 

pens  .20 
Expense,  repairing  water  pipes 
Expense,  repairing  gas  pipes 
Furniture  and  Fixtures,  chairs 
Expen.se,  2  tons  coal 


4.00 


12 

38 


13 


00 
75 

20 
75 
75 
50 
00 


Post  and  check  over  your  [josting. 


July  15,  189-. 

The  sales  since  the   Uth   inst.   are  as  follows:     All  of  them  an^  to  be  entered  on  the 
regular  terms:  6/10,  5/30,  net  4  mos. 

12th.     Henry  J.  Graves  Sons,  10  doz.  1126;  10  doz.  1209. 
Jas.  Hare,  10  doz.  1216;  10  doz.  1126;  10  doz.  931. 

Wm.  H.  Chamberlain,  Evansville,  5  doz.  1126.     This  order  need  not  be  iilaced  on  an 
Order  Sheet  as  it  was  filled  from  Wni.  IL  Chamberlain's  order  the  dav  it  was  received. 


17i> 


UKKIC1-:    KOUTINK    AM'     i. 


■ivIvl.LI   i.M 


Fred  Slieniiaii  &  Co..  IiidianajiDlis.  (HK'-uvclftli  do/.i-ii  cacli  of  all  the  numbers  on  sale 
fur  the  season.     (This  entry  is  to  be  posted  to  Sundry  Accounts  Receivable.) 

The  Pettv  Cash  Hook  contains  the  followinsr  records:  enter  them  in  regular  Cash  Book. 


lUywiH.il  Sc  Co.  less  (!;; 

.lus.  llarc,  less  Hi 

Henry  J.  Graves  tk>us,  less  6^ 


1317 

41 

9.^.7 

6-2 

lOU 

UO 

I'ost  the  book.s  and  elieck  over  the   jmsting. 


Expense,  cleauiuj;  ulHce, 
Expense,  daily  paper, 
Clarence  Sloner,  less  2% 
A.  P.  Uoot  &  Co., 


10     50 

1      50 

1896  I  80 

1234     00 


July  31.  ISii-. 
Enter  till'  fnllowini,'  sales  in  the  Sales  Jiook  on  regular  terms. 

Kith.  Wni.  II.  Lester.  Kan.sas  City,  15  doz.  1216;  15  do/,.  1211;  15  do/,.  1209;  25  doz. 
1200;  3  doz.  1121".. 

irth.  Thos.  K.  Harriiiirton.  Cannelton.  Ind..  25  doz.  12()C,:  10  doz.  953;  10  doz.  952: 
]('  doz.  941. 

18th.    Win.  II.  Chamberlain,  Kvaiisville,  .">  doz.  9311:  .">  doz.  920;  5  doz.  917;  5  doz.  910. 

19th.    Hirch  &  Shelters,  Cloverport,  Ky.,  25  doz.  1101;  10  doz.  1100;  10  doz.  1111. 

Post  the  accounts  of  Lester  and  Harrin<;ton  to  Sundry  Accounts  Receivable. 

Henry  J.  Clraves  Sons  order  the  following  to  be  shipped  by  August  5:  25  doz.  1200;  100 
doz.  953.  Sanijilcs  to  be  sent  at  once  by  express.  Enter  on  an  Order  Sheet  and  make  the 
entry  for  the  samples  on  the  Order  Sheet  and  in  the  Sales  Book. 

The  time  of  the  emidoyces  is  listed  below.  Enter  same  in  tlie  Pay  Roll  Book  referring 
to  the  illustration  on  page  103.  Each  foreman  or  forewoman  of  a  department  keeps  a  time 
book;  it  is  fnnn  these  time  books  that  the  Pay  Roll  is  compiled  in  business. 

Silking  Dki'aktmkkt,  Time  Book  "A."  ;\nianda  Connor,  forewoman,  *30.50;  Carrie 
Lyons,  $28.00;  Bertha  Polk,  S25.o0. 

Hemming  Dkp.vkt.mknt.  Time  Book  "  B."  Maggie  Allard,  forewoman,  129.75;  l{osa 
James,  1:20.75:  Ellen  Little,  ^30.50;  Ellen  Meiinier,  628.25;  (Record  the  amount  paid  on 
the  10th  inst.);  .Mattie  Allen,  $28.75;  Amanda  Little.  X25.50. 

.>LvKiN<i  DKrAKTMKXT,  Time  liook  "C.""  Floyd  Long,  foreman,  i;05.50;  F.  G.  Prine, 
$49.75;  Geo.  H.  Bush.  1:17.80;  R.  Folts,  *GG.25;  (Record  the  amount  paid  on  the  10th  inst.) 

CurnsG  Dki'autmknt,  'J'iine  ]?ook  ••1»."  IL  X.  Peek,  foreman.  i?!40.30:  (Record  the 
amount  paid);  ,\ustin  J.  Caiiii),  5'")8.4l). 

CoNTUACT  WoKK,  pel'  .lull  BouK.  Mrs.  .Mary  Hostler,  $53.50;  Maude  Elliott.  $19.00; 
Jas.  Bell,  $28.40;  Robt.  Jones,  $50.75;  Bessie  Nichols,  $40.30;  Clara  Erey,  $27.50;  Frank 
Royce,  $25.00;  Jessie  Weeks,  $21.50;  Minnie  Dunn,  $20.75;  Erma  Price,  $18.40;  (Record 
the  amount  advanced);  Lena  Frey,  $10.50;  Thomas  Burns,  $37.75;  Kueben  Doty,  $48.50; 
Lizzie  I'ateh.  $58.25;  A.  K.  Chandler,  $49.00;  Timothy  Hunt,  $40  70;  Geo.  Mosby,  $27.50. 

Ascertain  the  total  amount  jiaid  for  wages.     Rule  and  Foot  the  Pay  Roll. 

A  separate  Pay  Roll  is  kept  at  the  Mill  by  the  superintendent.  In  business  this  Pay  Roll 
would  be  verilied  by  the  bookkeeiier  before  the  money  ie  sent  to  p.-iv  it.  The  amount  of 
the  ^fill  Pav  IJoll  is  iriven  in  the  Pettv  Cash  Book  and  is  also  charged  to   Labor  account. 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


171 


The  Petty  Cash  Book  ooiitaiiis  the  following  records;  enlcr  them    in   the  regular  ("a.sh 
Book. 


Expeuse,  reuovaling  carpels 

Freight  ami  cartage,  bill  for  mo. 

Salary,  Herman,  }  rao.  7.'). 00 

Cloud,  J  ino.  93.75 

Mackev,  t  mo.  80.00 

Student,  6  da.  00  00 

Williams,  f  mo.  11 2.. 50 

Labor,  l)alauce  of  p.sy  roll 

Labor,  mill  pay  roll 


0 

75 


371 

1115 
1021 


00 

85 


25 

40 
50 


Foot  and  rule  tlic  Cash   Book  and  Sales  Book;  the  cash  on  hand   is:  bank  %!l7353.67, 

safe  §-:>37.63. 

Post  the  books  and  check  over  the  posting.     Take  a  trial  balance.  , 

Preparatory  to  closing  the  books,  Mr.  Williams  has  had  an  inventory  taken,   of  which 

the  followiug  is  an  abstract. 

Abstract  of  Inventories,  July  31,  189-. 


32000 

00 

44818 

20 

400 

00 

8500 

00 

21 

70 

110 

50 

1083 

30 

944 

95 

Real  Estate, 

Macliiuery, 

Furniture  and  Fi.xtures, 

Good  Will, 

Traveling  Expense,  amount  not  used, 

Silk  Account, 

Raw  Material, 

Merchandise,  5  doz.  No.  1216;  10  doz.  No.  1206; 

5  doz.  No.  916;  10  doz.  No.  931 ;  5  doz.  No. 

936;  10  doz.  No.  953;  20  doz.  No.  941. 


Before  making  a  Balance  Sheet  in  a  manufacturing  business  the  inventories  are  written 
(in  red  ink)  in  the  jiroper  ledger  accounts.  The  next  step  is  to  transfer  tlie  balances  of  the 
accounts  tliat  enter  into  the  cost  of  merchandise,  to  the  debit  of  the  Merchandise  account. 
These  accounts  are  then  ruled  and  the  inventories  (if  any)  are  brought  down.  It  is  evident 
after  this  is  done  tliat  the  Merchandise  account  and  the  accounts  that  enter  into  the  cost  of 
merchandise  will  not  appear  on  the  Balance  Sheet  as  they  apjieared  in  the  trial  balance. 

You  may  now  transfer  the  inventories  given  to  the  proper  ledger  accounts  in  red  ink. 
Transfer  the  balances  of  the  following  accounts  to  the  debit  of  the  Merchandise  account: 
Raw  Material,  Labor,  Salaries,  Silk,  Bands  &  Bo.xes,  Buttons,  Freight  &  Cartage,  Discounts 
and  Traveling  Expenses.     Next  rule  these  accounts  and  bring  down  the  inventories. 

In  making  the  Balance  Sheet  use  the  balairce  of  the  Merchandise  account  (not  including 
the  inventory)  as  given  in  the  ledger  account,  instead  of  the  balance  as  exhibited  in  the 
trial  balance.  Likewise  carry  the  inventories  of  the  accounts  closed  into  tlic  Merchandise 
account,  from  the  Ledger  to  the  Balance  Sheet. 

In  business  when  the  accounts  receivable  and  accounts  payable  are  cpiite  numerous,  they 
are  never  itemized  in  the  Balance  Sheet.  Yon  may  now  ascertain  the  total  of  the  amounts 
due  the  business  and  enter  it  on  the  Balance  Sheet,  specifying  it  as  '•'  Accounts  Receivable." 
Likewise  find  the  total  amount  owing  by  the  business,  and  specify  it  as  "Accounts  Payable." 
Foot  the  first  two  columns  of  the  Balance  Sheet  to  satisfy  yourself  that  your  work  has  been 
done  correctly.  Enter  all  the  inventories  in  the  Resource  column  (in  rod  ink)  and  complete 
the  Balance  Sheet. 

Close  the  books  and  present  them  for  insiiection  and  aj)proval. 


172  OFKlCli    KOUTINK    AM)    HOOK  KKEIMNG. 

MANUFACTURING    BUSINESS    INCORPORATED. 

Corporations.  A  coriioration  is  an  artificial  being  or  iicrson  fdrmeil  by  a  number  of 
natural  iior^oiis,  and  is  endowed  with  the  caiiacity  of  i)er[)etual  succession  and  of  acting  in 
certain  respects  like  a  natural  person.  A  corporation  derives  its  existence  and  power  from 
the  state  under  whose  laws  it  is  organized.  The  business  of  a  corporation  is  transacted 
through  and  by  its  directors  and  officers,  wlio  are  elected  by  the  stockholders  for  a  specified 
time,  usually  one  year. 

Advaiitiiijcs  of  Corporations.  The  one  great  advantage  that  corporations  have  over 
ordinary  partiiersiiips  is  the  power  of  succession.  In  a  partnership  the  death  of  a  partner, 
tiie  sale  of  a  partner's  interest,  habitual  intemperance,  the  doing  of  things  that  are  detri- 
ineiilal  to  the  other  i>arlners'  interests,  and  some  other  causes  operate  to  bring  about  a 
dissolution  of  the  partnership.  In  a  corporation  each  individual's  interest  is  composed  of  a 
certain  number  of  shares,  which  are  evidenced  by  a  certificate  of  stock.  Whenever  one  of 
the  stockiioldcrs  dies  or  he  disposes  of  liis  stock,  the  corporation  is  in  no  way  affected  by  it. 
The  death  of  an  officer  also  has  no  effect  on  a  corporation,  as  a  successor  is  immediately 
elected  by  the  directors. 

In  a  iiartnership  the  i)rivate  property  of  the  partners  can  be  held  for  the  debts  of  the 
partnership;  in  a  corj)oration  the  jjrivate  )iroperty  of  the  stockholders  usually  can  not  be 
held  for  the  debts  of  the  corporation. 

AVIien  the  number  of  ])ersons  interested  in  a  business  enterprise  is  very  large,  it  would  be 
very  inconvenient,  and  almost  impossible,  to  conduct  it  as  a  partnership.  Every  death,  sale 
of  interest,  etc.,  would  bring  about  a  dissolution  of  tiie  partnership.  As  the  private  projierty 
of  each  partner  can  be  held  for  the  liabilities  of  the  partnershij),  very  few  persons  are  dis- 
posed to  enter  a  ])artners]iip  where  the  members  are  quite  numerous. 

Corporations  not  only  possess  advantages  over  luirtnersliips  but  are  absolutely  necessary 
in  conducting  the  large  mercantile,  manufacturing  and  other  business  enterjirises  of  our 
time.      It  would  be  almost  impossible  to  get  along  without  them. 

How  FornuMl.  Corporations  are  formed  in  two  ways,  viz.,  (1)  by  charter;  (2)  under 
general  statute.  When  a  corijoration  is  formed  by  a  special  act  of  the  legislature  of  any  state 
or  territory,  it  is  said  to  be  formed  by  charter.  Owing  to  the  convenience  of  the  second 
method  most  corporations  are  now  formed  under  general  statute  laws.  The  growing  demand 
for  a  simi)le  method  of  organizing  corporations  has  led  the  legislatures  of  all,  or  nearly  all, 
the  states  and  territories  to  enact  laws  governing  the  organization  of  corporations.  It  is  now 
jiossiljle  to  organize  a  corj)oration  at  any  time,  without  applying  to  the  state  legislature,  by 
simply  complying  with  the  law  governing  the  incorporation  of  business  enterprises.  As  the 
re(piirements  vary  somewhat  in  the  different  states,  the  student  is  advised  to  consult  the 
statute  laws  of  liis  own  state.  For  the  purjiose  of  illustration,  the  requirements  for  incor- 
jioration  in  the  State  of  New  York  are  given  on  the  following  pages. 

Note.— Owing  to  the  importance  of  corporations  in  the  commercial  world  to-day,  it  will  be  well  for 
every  student  to  make  a  thoroujih  study  of  them.  Tliis  may  be  done  by  consulting  and  studying  commercial 
law  texts,  the  statutes  of  the  slate  in  which  the  student  resides,  and  such  other  books  of  reference  as  may  be 
suggested  bj-  the  teacher. 

Reqtiircnu'iits  for  Incorporation.  The  first  and  most  important  step  in  incorpor- 
ating a  business  enterprise  is  to  secure  subscribers  for  stock.  In  the  State  of  New  York  the 
law  requires  tiiat  at  least  one-half  of  the  capital  stock  must  be  subscribed  for  in  good  faith, 
before   the   Certificates   of   Incorporation   (two  in   number)  can   be   filed.       In  some  states 


OFFICE    ROUTINF    AND     MOOKKEEPING.  173 

Certificates  of  Iiiourjioratidii  arc  dcsign:ited  as  Articles  <if  ln((ii-i"irat  inn.  The  law  further 
requires  that  one-half  of  the  capital  stock  imisi  be  jiaid  within  one  year  from  thr  date  when 
the  Certificates  of  Incorporation  were  filed.  'I'liree  or  more  subscribers  for  stock  are  neces- 
sary in  New  York  State,  two-thirds  of  them  must  be  citizens  of  the  United  States,  and  a 
majority  of  them  must  be  residents  of  the  State. 

The  iie.xt  step  is  to  hold  a  ])reliminary  meeting  of  the  subscribers  to  determine  the 
number  of  directors  to  be  appointed,  and  to  appoint  tiiose  who  are  to  serve  the  first  year. 
The  directors  appointed  at  this  meeting  will  be  formally  elected  after  the  Certificates  of 
Incorporation  have  been  accepted  and  filed  with  the  proper  state  and  county  officials.  The 
number  of  directors  required  in  the  State  of  New  York  is  not  less  than  three  nor  more  than 
thirteen,  each  of  whom  shall  be  a  holder  of  at  least  five  shares  of  stock.  At  least  two  of  the 
directors  must  be  residents  of  the  State.  A  record  of  the  proceedings  of  this  jireliminary 
meeting  should  be  recorded  in  a  Mi-nut,e  liook  in'  the  jierson  appointed  to  act  as  secretary. 

The  next  step  is  to  draw  up  and  execute  two  copies  of  the  Certificate  of  Incorporation, 
both  of  which  are  to  be  signed  and  acknowledged  by  the  incorporators.  It  is  a  good  plan  to 
secure  the  services  of  a  competent  attorney  to  prepare  the  Certificates  of  Incorporation  and 
to  advise  the  incorporators  in  their  proceedings.  The  form  of  a  certificate  used  in  the  State 
of  New  York  is  as  follow.^: 

Certificate  of  IxcoRPOiiATio>r. 

.State  of  ^ciu  ^ovU,    /  ^^ 

County  of  Monkoe,  * 

We,  the  undersigned,  desiri/ii/  tu  funn  a  rorporatiun  jmrsuaid  to  the  statutes  relating  to  tliv 
B7isiness  Corporation  Law.  all  heing  of  full  age,  and  two-ttiirds  being  citizens  of  the  United 
States,  and  a  majority  ieing  residents  of  the  State  of  New  York,  do  herehg  rcrtifg : 

I. 

The  name  of  t lie  'proposed  corporation  is  the  Chainhss  Bicycle  Company. 

Tlie  object  for  wlucli  this  corporation  is  formcit  is  to  engage  in  the  manufartnrc  of  the  chain- 
less  bicycles,  of  which  Isaac  TlVfco.r  is  tlic  patentee. 

III. 
Tlie  Capital  Stock  of  the  corporation  shall  be  One  Hundred  Tliousand  Dollars  (SIOOOOO). 

IV. 
The  Capital  Stock  sliall  be  divided  into  one  thousand  [1000)  sJtarcs,  an.d  to  be  valued  at 
One  Hunched  Dollars  {$100.00)  per  .'share. 

V. 

Tlie  location  of  its  principal  business  office  shcdl  be  in  tlie  city  of  Rochester,  in  the  County 
of  Monroe,  State  of  New  York. 

VI. 

The  duration  of  tlie  corporation  is  to  be  fifty  (pu)  years. 

VII. 
The  numbei  of  its  directors  is  to  be  three  (S). 


^tiitc  of  iXcui   ilovU,  j.gg  "'■  S.   Osiwr,:\. 


174  OKKICE    ROUTINK    AND     HOOKKEEPING. 

17//. 

The  tuiiiies  aud  pnd-officc  addresses  of  Ihe  directors  for  the  first  year  are  as  follow.^  : 
Isaac  Wilcox.  Rochester,  JV".  }'. 

H.  L.  MiLhKii,  Rochester,  N.  Y. 

J.  11.  AfoonE,  Rochester,  X.  }'. 

IX. 

The  7iames  and  post-office  addresses  of  the  subscribers  for  stock,  and  the  number  of  shares 
for  which  they  .'>nb.<icribc  are  as  follows: 

KAMES.  POST-OFFICE  ADDRESSES.  KG.   OF  SHARES. 

Isaac  Wilcox.  Roche.'iter,  N.  Y.  T^venty. 

II.  L.  MiLLKH,  Rochester,  N.  Y.  Fifteen. 

J.  If.  Mooh'K,  Rochester,  N.  Y.  Fifteen. 

H.  >'.  OsiiOh'X.  Detroit,  Mich.  Ten. 

^U  luitucss  iwhcvcof ,  We  have  made,  signed  and  acknowledged  this  certificate  this  first 
day  of  Auyu.'<l.  ISO-.  y^..,^^.  jj-^^coA". 

U.  L.  Miller. 
J.  H.  Moore. 

County  of  Monrok,  )  "" 
On  this  first  day  of  August,  189-,  before  nip  personally  appeared  ha/ic  Wilcox,  II.  L.  Miller, 
J.  II.  Moore  and  W.  S.  Osburn,  to  me  personally  known  to  be  the  persons  described  in,  and  who 
executed  the  foregoing  certificate,  and  they  severally  acknowledged  to  me  that  they  executed  the 
same  for  the  jmrjwses  therein  mentioned.  Piciiaki)  Roe 

Notary  Public,  Monroe  Co.,  N.  Y. 

After  tliey  have  been  executed  by  the  incorporators,  the  two  copies  of  tlie  Certificate  of 
Incorjioratioii  imist  be  sent  to  tlie  Secretary  of  State,  accompanied  by  a  bank  draft  for  the 
amount  of  tiio  incorporation  fee.  In  New  York  the  incorporation  fee  is  one-eighth  of  one 
per  cent,  of  the  capital  stock.  Tlie  Secretary  of  State  will  attach  his  certificate,  in  which 
he  will  state  that  the  Certificate  of  Incorporation  has  been  recorded.  One  copy  will  be  filed 
in  his  office  and  one  co2)y  will  be  forwarded  to  the  Clerk  (in  some  states  the  Recorder)  of 
the  county  in  which  the  cor[)oration  is  to  do  business. 

The  incorporators  should  next  hold  a  meeting  and  formally  elect  the  directors  chosen 
before  the  Certificates  of  Incorporation  were  filed  with  tlic  state  and  county  officials.  The 
directors  should  then  choose  the  necessary  officers  from  among  their  number.  At  this 
meeting  the  necessary  by-laws  for  the  management  of  the  corporation  should  be  adopted. 
These  by-laws,  among  other  tilings,  should  specify  the  number  of  officers  to  be  elected  and 
the  time  they  are  to  serve.  A  complete  record  of  the  jiroceedings  of  tliis  meeting  should 
be  made  in  the  Minute  Book  by  the  Secretary. 

The  officers  of  the  corporation  now  being  elected,  the  president  (or  vice-president)  and 
treasurer  (or  secretary)  will  comply  witli  tlic  nest  retpiirement  of  tlic  law,  by  certifying  that 
one-half  of  the  capital  stock  has  been  subscribed  for  in  good  faith.  This  certificate  is  to  be 
executed  and  acknowledged  in  duplicate;  one  copy  to  be  filed  in  the  County  Clerk's  office 
and  the  other  with  the  Secretary  of  State.  Tlie  form  of  certificate  as  used  in  New  York 
State  is  as  follows: 


office  routine  and  bookkeeping.  175 

Certificate  that  One-Half  of  Capital  Stock  is  Subscribed. 

J.tatc  of  Hciu  Hovfe,        )  gg 

County  of  Monroe,  ) 

We,  the  President  and  Treasurer  of  the  Chainlets  Bicycle  Company,  do  hereby  certify  that 
one-half  of  the  Capital  Stock  of  the  Chainless  Bicycle  Company  has  in  good  faith  been  subscribed. 
Ju  iwitncss  tuhcvcof,  We  have  signed  and  executed  this  certificate  on  this  Fifth  day 
ofAvgusf,  IS!)-.  Isaac   Wjlvox,  President. 

J.   H.  Moore,   Treasurer. 
%\-A\t  of  %t\v  HovH,         )  gg 
County  of  Monroe,  ) 

On  this  Fifth  day  of  August,  1S9-,  before  nie personally  appeared  Isaac  Wilco.i;  and  J.  H. 
Moore,  to  me  personcdly  known  to  be  the  persons  descri/jed  in,  and  who  executed  the  foregoing 
certificate,  and  severally  acknowledged  to  me  that  they  executed  the  same. 

Rich  AND  Roe, 
Notary  Public,  Monroe  Co.,  X.  Y. 
M'Att  of  ^CXO  ^OfU,  I  gg 

County  of  Monroe,  ) 
Isaac  Wilcox  and  J.  H.  Moore,  being  screrally  duly  sworn,  each  for  himself  deposes  and 
says  that  he,  the  said  Isaac  Wilcox,  is  President  of  the  Chainless  Bicycle  Company ;  and  that 
he,  the  said  J.  H.  Moore,  is  Treasurer  thereof,  and  that  the  statements  contained  in  the  fore- 
going certificate  are  true.  Isaac  Wilcox. 

J.  H.  Moore. 

Severally  subscribed  and  sworn  to  before  me  on  this  Fifth  day  of  August,  189-. 

Richard  Roe, 
Notary  Public,  Monroe  Co.,  N.  Y. 

The  statutes  of  K"ew  York  state  further  require  tlint  one-half  of  the  capital  stock  shall 
be  paid  within  one  year  from  the  date  of  incorporation,  and  that  two  certificates  of  such 
payment  be  executed  and  acknowledged  by  a  majority  of  the  directors,  and  filed  with  tlie 
Secretary  of  State  and  the  County  Clerk.  Failure  to  comply  with  tliese  requirements  will 
tend  to  dissolve  the  corporation  at  the  end  of  the  year,  and  the  directors  will  be  hold  respon- 
sible individually  and  collectively  for  the  acts  of  the  corporation  and  the  debts  contracted 
by  it,  after  the  expiration  of  the  first  year.  Their  private  property  may  then  be  held  to 
discharge  any  of  the  liabilities  of  the  corporation,  the  same  as  in  an  ordinary  partnership. 
The  form  of  this  certificate  for  the  State  of  New  York  is  as  follows: 

Certificate  of  Payment  of  One-Half  of  Capital  Stock. 

State  of  gicxu  ilovh,  )  ^^ 

County  of  Monroe,  i     " 
We,  the  undersigned,  a  majority  of  the  directors  of  the  Chainless  Bicycle  Company,  do 
hereby  certify . 

That  the  amount  of  the  Capital  Stock  of  said  corporation  is  One  Hundred  Thou.<^and  Dol- 
lars {SIOQOOO),  and  that  one-half  thereof  has  been  paid. 

%\\  luitncss  xuhcvcof,  We  have  signed  and  executed  this  certificate  on  this  Fourteenth 
day  of  December,  189-.  Isaac  Wilcox. 

.J.   H.   Moore. 


17(>  UKFICK    ROUTINE    AND     HOOK.KEEPING. 


S>t;xtc  of  ileiu  ilovU.  )  ^^ 

Col  NT V    (II     .MuNKOK.  ) 


On  //lis  Fourlcoilh  day  of  December,  ISO-,  pemofuilli/  appeared  Isaac  Wilcox  and  J.  II. 
Moore,  to  me  persoiialli/  knotvn  to  Ije  the  persons  described  in.  and  ivho  executed  the  fo'''>qoiiig 
cirtifuale,  and  severally  acknowledyed  to  me  that  they  exi'i-uti'd  the  .mine. 

RicBAKD  Roe. 
Sotury  Public,  Monroe  Coiinly.  X.  V. 
§tatc  oC  iXciu  ilovU,  /  ^^ 

Coi-.VTY    OF    MOXROK,  f 

hauG  Wilcox  and  J.  II.  Moore,  bcimi  duly  and  .'severally  sworn,  each  fur  himself  deposes  and 
says  that  he  is  a  director  of  the  Chainless  Bicycle  Company,  and  that  the  statement  contained 
in  the  foregoing  certificate  is  true.  Isa.ic   Wilcox. 

J.    I!.   MooitE. 

Severally  subscribed  and  siuorn  to  before  me  on  this  Fourteenth  d^y  of  December,  189-. 

Rich  A  an  Roe, 
Notary  Public,  Monroe  Co..  .\.  Y. 

A  further  obligiition  resting  iqion  ihe  directors  of  :i  corporation  organized  under  the  hiws 
of  tlie  State  of  New  York  is  that  they  are  required  to  make  an  annual  report  to  tlie  Secre- 
tary of  State  and  to  the  County  Clerk,  during  the  month  of  January.  Failure  to  comply 
with  this  requirement  will  tend  to  dissolve  the  corporation,  and  will  also  make  tiie  directors 
personally  responsible  for  the  acts  and  debts  of  the  coriioration.  The  form  of  annual  rejiort 
for  Xew  York  State  is  given  below: 

Annual  Report. 

ANNUAL    KKPOKT   Ol'   Til  K    CHAINLKSS    iilCYCLE    CO.Ml'.VNY. 

We,  the  undersigned,  a  majority  if  the  directors  of  the  Chainless  Bicycle  Company,  do 
hereby  make  the  following  report: 

The  Capitol  Stork  of  this  corporation  is  One  Hundred  Thousand  Dollars  (S 100000). 

The  proportion  of  its  Capital  Stock  actually  issued  is  Si.vty  Thousand  Dollars  {$60000). 

The  existing  debts  of  the  corporation  do  not  exceed  Eight  Thousand  Dollars  (SSOOO). 

The  as.vets  of  the  corporation  at  lead  equal  the  sum  of  Seventyfive  Thousand  Dollars 
(^75000). 

Dated  January  1-i.  ISO-.  '  JsyiAC   Wjlcox. 

II.    L.   Mill  Eli. 
Jitixte  of  ilcui  <Un-li,  )    „  J-  H-  Muohe. 

—  ^  r  SS. 

County  oi-  .Monkhi:,  i 
J.mac  Will-ox  and  II.  L.  .Miller,  being  duly  and  severally  sworn,  each  for  himself,  deposes 
and  says  that  he,  the  said  Isaac  Wilcox,  is  the  President  of'  the  Chainless  Bicycle  Company, 
and  that  he,  the  said  II.  /,.  .\/iller.  is  the  Secretary  thereof;  and  that  the  statements  contained 
in  the  foregoing  report  are  true  to  the  best  of  his  knowledge  and  belief. 

/.s'.l.l''    Wii.cox. 
If.    /..  Miller. 
Severally  sworn  to  before  me  on  this  Twelfth  day  of  January.  1SU-. 

Richard  Roe. 
Notary  Public.  Monroe  Co.,  N.  Y. 


OFFICE    ROUTINE    AND     BOOKKEEl'INC.  177 

Board  of  Directors.  As  stated  before,  the  directors  of  a  corporation  are  elected  by 
tlie  stockholders.  Eacli  stockliolder  is  entitled  to  one  vote  for  ever}'  share  of  stock  he  owns. 
The  number  of  directors  that  ma}'  be  chosen  is  regulated  by  statute  laws  in  most  of  the 
states,  and  the  by-laws  of  each  corporation  determine  the  time  for  which  they  are  to  be 
elected.  The  directors  are  entrusted  with  the  management  of  the  corjioration's  affairs;  and 
the  business  is  transacted  through  and  by  the  officers,  who  are  chosen  by  the  directors  from 
among  their  number. 

Duties  of  Officers.  The  by-laws  of  each  corporation  usually  designate  the  number  of 
officers  to  be  cliosen,  and  the  duties  of  each  are  also  defined.  The  following  officers  are 
usually  elected:  president,  secretary  and  treasurer. 

The  duties  of  the  president  are,  to  preside  at  the  meetings  of  the  board  of  directors,  and 
to  carry  into  execution  the  wishes  of  the  board.  He  is  the  executive  officer  of  the  corpora- 
tion.    Sometimes  a  vice-president  is  chosen,  who  acts  as  president  in  the  absence  of  the  latter. 

The  secretary  attends  to  the  correspondence  of  the  corporatioil  and  is  the  custodian  of 
the  corporation  seal.  The  official  records  of  tlie  corporation  are  kej^t  by  him.  He  attends 
the  meetings  of  the  board  of  directors  and  records  the  proceedings  in  the  Minute  Book.  He 
also  has  charge  of  the  Subscription  Book  or  List,  the  Stock  Certificate  and  Transfer  Book, 
the  Stock  Ledger,  Dividend  Book  or  Sheet,  the  Installment  Scrip  Book,  and  such  other 
books  and  records  as  may  be  thought  necessary  to  keep  the  official  records  of  the  corporation. 

The  treasurer  has  charge  of  the  finances  of  the  business.  He  supervises  the  keeping  of 
the  regular  books  of  the  business,  and  the  bookkeeper,  cashier  and  other  assistants  are  subject 
to  liis  directions. 

Books  Used.  The  regular  books  of  a  corj)oration  are  of  the  same  form  and  design  as 
those  used  iu  a  business,  conducted  by  a  jiartnership  or  single  proprietor.  The  only  differ- 
ejice  in  keeping  them  is  in  the  opening  and  closing  entries.  No  accounts  are  kept  in  the 
general  books  with  the  stockholders  to  rejn'esent  their  investments.  In  ])lace  of  such 
accounts,  a  Capital  Stock  account  is  kept,  whicli  is  credited  for  tlie  amount  of  the  capital 
stock  specified  in  the  charter  or  in  the  Certificate  of  Incorjioration.  Tlie  corresponding 
debit  for  Capital  Stock  account  is  Subscription  account,  if  the  full  amount  of  capital  stock 
is  subscribed.  If  it  is  not  all  subscribed  for.  Treasury  Stock  is  debited  for  the  amount  not 
subscribed.  If  additional  stock  is  subscribed  for  at  any  time.  Subscription  account  is  debited 
and  Treasury  Stock  is  credited.  More  stock  than  the  amount  of  capital  stock  specified  in  the 
charter  or  Certificate  of  Incorporation  can  not  be  subscribed.  It  requires  a  new  charter  or 
the  filing  of  a  new  Certificate  of  Incorporation  to  increase  the  amount  of  the  capital  stock  of 
a  corjioration.  The  desired  amount  of  capital  stock  will  have  to  be  specified  in  the  new  ap])li- 
cation,  and  one-half  of  it  will  have  to  be  paid  within  one  year  from  the  date  of  incorporation. 

Since  the  capital  stock  of  a  corporation  can  not  be  increased  or  decreased  except  by  the 
authority  of  the  State,  the  account  with  Capital  Stock  should  at  all  times  equal  the  amount 
of  capital  stock  specified  in  the  cliarter  or  in  the  Certificate  of  Incorporation.  The  net  gain 
or  net  loss  is  never  transferred  to  the  Capital  Stock  account.  Hence,  in  closing  the  books 
the  balance  of  Loss  &  Gain  account  is  usually  left  open,  but  it  may  be  transferred  to  Undi- 
vided Profits  account.  The  directors  then  meet  to  decide  what  shall  be  done  with  the 
undivided  profits.  Usually  a  dividend  of  a  certain  per  cent,  of  the  subscribed  stock  is 
declared,  and  the  amount  necessary  to  pay  it  is  transferred  to  the  credit  of  Dividend  account. 
When  all  the  dividends  are  paid  the  account  should  balance.  The  remaining  balance  of  the 
undivided   profits   may  remain  open,  or  it  may  be  transferred,  in  full  or  in  part,  to  the 


ITS 


E    ROITIXE    AND    BOOKKEEi..\. 


:,     It  is  customary  to  nes^rre  '  "    "  -  whcu  the  basiness  is 

•  •    .  in  paring  diTuiends.  etc..  in  t  -       . 

Offirial  Records.  Besides  the  re^Ur  books  ased  in  recording  the  bosinesf  transactions 
of  iLe  c\irjx>ranon.  a  number  of  books  are  kept  bj  the  aecretaur,  which  are  known  as  the 
Kvks  of  i>ffioial  record.     A  description  of  these  books  follows. 

Xinnte  Book.  A  record  of  the  proceedings  of  the  directors  and  stockholders  is  kept 
in  the  Minnt^"  Ivx>k.  This  record  is  kept  by  the  secretary  and  signed  by  him  and  the 
president.  The  valne  of  the  Minute  Book  can  not  be  orerestimated,  as  it  is  freqnentlv 
required  to  be  produced  in  <»uri  in  cases  of  litigation.  To  the  records  therein  compiled  the 
o>ffii.vrs  of  the  corjK>raiion  look  for  the  requisite  authority  from  the  board  of  f.r 

their  official  acii;,  and  by  which  their  administration  may  be  jndged.     The  11 a. 

should  at  all  lime^  be  in  the  iv«ssession  of  the  secretary.     With  this  book  and  the  other 
books  of  official  rtvord  the  Kxikkeeper  has  nothing  to  do,  except  upon  ;:      -  n  furnished 

by  the  secrt lary:  this  information  is  usually  furnished  in  the  form  of  r..  a. 

Subscription  Book.  The  Subscription  Book  is  the  financial  basis  of  a  corporal; v.. . 
In  this  Kx>k  each  jvrson  who  desires  to  become  a  stockholder  of  the  corpc  -  .  , 

for  the  number  of  sha^£^s  that  he  wishes.    By  signing  his  name  he  becomes  p-,:,- ...-_._ 

to  the  coiporaiion  for  the  full  value  of  the  stock  for  which  he  subscribes,  and  the  written 
promise  thus  made  becomes  a  resource  to  the  corporation.     Erery  subscription  "  -'      ' : 

be  properly  headt-d  so  that  it  will  be  binding  upon  the  subscribers.      Very  ofter.  r  .. 

page  in  the  ICnnte  Book  is  used  instead  of  the  Snbscripdon  Book.     (5»f  i." 
Suhfcripiion  Bcftt  heOor). 

SrBscKiPTios  Book. 

TTe,  the  undersigned,  hereby  subscribe  and  agree  to  take  the  nnmWr  of  shares  of  the 
Luman  Glore  Company  Stock  set  oppoate  our  names. 


...            :>-:^ 

Xivor  SiBJLRSs. 

AMOCSTS. 

25 

O^. 

iYoar  place  faere.) 

*• 

50 

1                   -"•' 

■^ 

•^ 

<• 

I          90 

5 

«« 

1          » 

7C»-  • 

.■ 

■• 

35 

1 

2JO0 

00 

SO','        • 

Aoe.        1     J-ALtman 

H.  T.  Williams . 
Tt)c«s.H.  Bens-- 

C        T-rans 

n.  A-Clarr 

ILO.  Minco... 


Sometimes  special  columns  are  provided  in  the  Subscription  Book  in  which  are  recorded 
the  payments;   this  form  is  very  convenient  when  payments  are  made  in  in?:."  -.  s 

column  Wing  provided  for  each  installment.     Instead  of  placing  these  special  -  ;:: 

the  Subscription  Book,  an  installment  sheet  may  be  used.     On  this  sheet  will  be  recorded 
the  names  and  amounts  due  from  subscribers.     As  the  installments  are  coUj^:    -  ■  -  -     - 
c^ediI<^i  on  ihe  installment  sheet:  when  all  have  been  collected.  Cash  is  debited  ; 
and  Subscription  account  is  credited.     Information  that   the  Subscription  Book  contauns, 
which  the  bc>cikkeeper  should  know  is  usually  famished  to  him  in  memc-s'  "•""  ■'  ■-"■  ""^v 
the  secretary. 

Inst&llmeiit  Scrip  Book.  The  Installmeait  Scrip  Book  is  a  book  of  receipts,  which 
are  issued  to  suiiscribrrs  when  their  ■-.-•"—-•--  are  paid.  The  installment  scrip  is  given 
under  the  corporate  seal  and  is  sign  als,  usually  the  secretary  and  the  treasunea-. 


(jrnCK    HOVTi.SK    AfCO    BOf 


3  79 


of  HtocL  -  'juld 

'&•  I't^iiiUc    i>l>     llit:    jUfiUiiJLUltSUl  «iU«3t!M:,   i*f     uUt:    iUliUlllUj^Ul    *>i<lUUlUe     111    tilt; 

feu.:     -,-.-.  ..         . 

Sitoe^k  C>*'-rtiii<-at-»'  and  'J  raiiKf»-r  Jtiuvk.     Tbie  k  a  U/und  Uwk  «f  tjlauke  witii  Htutjt-. 

*  •  'J'Taruifiir  Jiwk  on  j/oye  180. )    kufiit  fet</«k  ' 

it  .^  .    .  .^-       ...     trorjAjraU;  «»atl  aud  it  bigued  b*'  two  of  th" 

Uc  aud  trtaiBurtir.     Tuesfc  ot:rtilieat*t  cerLifv  that  tLe  iiolder  ie  ' 

a  '  !.,  aud  that  • 

Ifl. _--        -.       -■     - -      - ^jj'JiiXUVU,   but    J.  .  ,. 

eurrtnider  'j  .«.     It  will  l»t  owtervtd  bv  eonnuiiiur  the  UixitsiraUvu  oi 


J"-- 

"by  tbe  one  nuiing  tiis  traut:  preseuct  «f  tbt  seraretarj'.    The  third  part  o 

«<>'  ijf  tilt:    <>■ 

CS».'  ■/€•  VCTV  ', 

JEtbe  :-  -ry  imwiTtant  Twserdfc. 

Tfc'.  .^  It)  hfc  trai. 

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office  routine  and  bookkeeping.  181 

Manl'facturin(;  Business,  Continued 

August  1,  ISO-. 

To  the  Student.  In  order  that  you  may  get  an  intelligent  idea  of  the  method  of  form- 
ing a  corporation,  you  will  be  required  to  perform  the  routine  work  in  the  order  in  whieh  it,  is 
done  in  bu.siness.  To  do  this  it  will  be  necessary  for  you  to  keep  the  books  of  :)fficial  record 
(stock  books)  as  well  as  tlie  regular  books  of  the  business.  In  business  the  books  of  official 
record  are  kept  by  the  secretary. 

Glove  IJusiiiess  Iiieorporated.  At  a  preliminary  meeting  held  on  the  15th  day  of  July, 
the  partners  decided  to  form  a  corporation  under  the  laws  of  your  state.  The  name  of  the 
corporation  is  to  be  the  Luman  Glove  Company,  and  the  capital  stock  is  to  be  $150000,  divided 
into  1500  share  of  §100  each.  The  resources  and  good  will  of  the  glove  manufacturing  busi- 
ness are  to  be  turned  over  to  the  corporation,  for  which  300  shares  of  stock  are  issued  to  eacli 
of  the  partners.  Each  of  the  stockholders  (partners)  is  to  serve  as  a  director  for  the  first  year, 
and  the  officers  are  to  be  as  follows:  H.  T.  Williams,  President:  J.  A.  Luman,  Vice-President; 
Thos.  H.  Betts,  Secretary;  C.  R.  Evans,  Treasurer.  In  business  a  record  of  proceedings  of 
this  meeting  would  be  made  in  the  Minute  Book  by  the  secretary. 

Books  of  Official  Record.  You  may  now  prepare  a  Subscription  List  on  the  page  re- 
served for  this  purpose  in  your  blank  book,  referring  to  the  illustration  on  page  178.  Get  your 
teacher  and  three  other  parties  to  sign  for  the  subscribers,  who  are:  H.  T.  Williams,  J.  A. 
Luman,  Thos.  H.  Betts  and  C.  R.  Evans.  In  business  a  power  of  attorney  would  have  to  be 
secui'ed  from  each  of  the  above  named  parties,  before  the  parties  3'ou  secured  could  subscribe 
for  them. 

You  may  now  proceed  to  prepare  the  Certificate  of  Incorporation,  or  Articles  of  Incor- 
poration, oiia  sheet  of  legal  cap  paper,  referring  the  illustration  on  page  173  and  also  comijly- 
ing  with  the  requirements  of  the  state  under  whose  laws  this  business  is  supposed  to  be  incor- 
porated. Ask  your  teacher  to  assist  you  whenever  it  becomes  necessary.  In  this  business  it 
will  not  be  necessary  to  prepare  more  than  one  copy  of  the  Certificate  of  Incorporation.  The 
same  parties  who  signed  the  Subsci'iption  List  should  be  secured  to  sign  and  acknowledge  the 
Certificate  of  Incorporation.  Some  one  should  be  secured  to  sign  for  "Richard  Roe"  as 
Notary  Public.  "Richard  Roe"  is  a  mythical  person,  used  in  law  for  illustrative  purposes. 
It  would  be  a  violation  of  the  law  for  any  one  but  a  Notary  Public  to  sign  as  such.  Have  the 
Certificate  of  Incorporation  ajiproved  by  the  teacher;  then  brief  and  file  it. 

We  will  now  suppose  that  the  Certificate  of  Incorporation  lias  been  forwarded  to  the  projjcr 
state  ofBcial,  and  has  been  accepted  by  him,  recorded  in  his  office,  and  a  copy  of  the  same 
forwarded  to  the  proper  county  official  of  the  county  in  which  the  business  is  located.  In  busi- 
ness another  meeting  of  the  stockholders  would  now  be  held  to  formally  elect  the  directors,  who 
in  turn  would  elect  the  officers.  A  record  of  the  proceedings  of  this  meeting  would  be  made 
in  the  Minute  Book  by  the  secretary.  Your  next  duty  will  be  to  jji-epare  a  certificate,  certifying 
that  one-half  of  the  capital  stock  has  been  subscribed,  and  another  that  one-half  of  the 
capital  stock  has  been  paid.  The  parties  who  previously  signed  for  the  stockholders,  and 
who  represent  the  officials  of  the  corporation,  should  sign  and  acknowledge  these  certificates. 
Have  tliem  ajjproved  by  the  teacher;  then  brief  and  file  them.  In  doing  this  work  be  sure 
to  comply  with  laws  of  the  state  under  which  the  business  is  supposed  to  be  incorporated. 

As  the  requirements  of  the  law  are  now  fulfilled,  and  the  stock  subscribed  has  been  paid 
for,  you  may  write  up  four  Certificates  of  Stock,  one  for  each  stockholder.  Be  sure  to 
make  a  detailed  record  on  the  first  part  of  the  stub.     Notice  that  the  Treasurer  and  President 


182  OKKICIf    KUUTINE    AM)    HOOK  K  KEPINX,. 

have  signed  these  Certificates.  Next  get  the  parties  reiireseiiiiiig  ilie  stockholders  to  sign  tlie 
stubs  of  tiie  cerlitieates.  In  business  tlie  certificates  are  det;iched  from  the  stubs  and  delivered 
to  tlie  stockholders.     In  this  business  you  may  deliver  them  to  the  teacher. 

In  the  Stock  Ledger  debit  Capital  Stock  account;  for  the  amount  of  the  stock  subscribed. 
Credit  each  stockholder  for  the  amount  of  stock  issued  to  him.  Give  ten  lines  to  Capital 
Stock  account  and  five  lines  to  each  subscriber  for  stock.  If  desired  the  number  of  the 
shares  issued  may  be  written  in  the  explanation  column  of  each  account.  When  entries  are 
made  directly  in  the  Ledger,  as  in  the  above  case,  it  is  a  book  of  original  entry.  This  com- 
pletes the  opening  entries  on  the  books  of  official  record. 

Openiiiu;  Entries — Kesjiilar  Hooks.  Tudcr  date  of  August  1,  make  a  record  in  the 
Journal  similar  to  liu-  following: 

"The  co-partnership  heretofore  existing  between  U.  T.  Williams,  J.  A.  Luman,  Thos.  H. 
Hetts  and  C.  R.  Evans  under  the  firm  name  of  the  Luman  Glove  Company  has  this  day 
been  dissolved  bv  mutual  consent.  The  members  of  the  late  partnership  have  decided  to 
incorporate  the  business  under  the  title  of  the  Luman  Glove  Company.  To  that  end  and  for 
that  purjiose.  Certificates  of  Incorporation  have  been  filed  with  the  proper  state  and  county 
ofiicials  in  which  are  sj-ecified  that  the  Capital  Stock  of  the  corporation  is  $150000,  divided 
into  1500  shares  of  «!lOO  each.  The  resources  and  good  will  of  the  business  are  turned  over 
to  the  corporation,  for  which  1200  share  of  stock  are  issued.  300  to  each  partner.  The  remain- 
ing 300  shares  will  remain  in  the  treasury,  to  be  disposed  of  in  the  future,  and  be  known  as 
Treasury  Stock.     The  liabilties  of  the  late  partnership  are  to  be  paid  by  the  corjioration." 

Following  this  statement  make  a  Journal  entry  debiting  Subscription  account  for  the 
amount  of  stock  subscribed  and  Treasury  Stock  account  for  the  amount  of  stock  not  sub- 
scribed.    Credit  Capital  Stock  for  ^150000. 

Note.— In  business  it  is  customary  to  open  a  new  set  of  books  when  a  partnership  is  converted  in  a  corpor- 
ation. In  tliis  instance  tlie  old  books  will  be  used;  the  accounis  representing  the  investments  of  the  partners 
will  be  closed,  and  accounts  with  Capital  Stock,  Tresxsury  Stock  and  Subscriptions  will  be  substituted. 

You  will  now  credit  each  of  the  partners  with  a  sufficient  amount  of  good  will  to  make 
his  present  capital  equal  !j3()000.  Debit  Good  Will  account  for  the  total.  Be  sure  to  write  an 
approi>riatc  exjilanation  for  this  entry. 

Debit  each  of  the  stockholders  for  the  stock  subscribed  and  credit  Subscription  account 
for  the  total.  When  these  entries  are  posted  the  Subscription  account  and  the  stockholders' 
accounts  should  balance.  The  stockholders'  interests  in  a  cor])oration  are  evidenced  by  the 
Certificates  of  Stock  issued  to  them  and  by  the  accounts  in  the  Stock  Ledger.  Write  an 
appropriate  explanation  of  this  entry. 

Post  the  books.  Check  over  your  posting.  This  completes  the  opening  entries  of  the 
books.  Excepting  the  oiicning  and  closing  entries,  the  regular  books  of  a  corporation  are  in  no 
wise  different  from  those  of  a  partnershi])  or  of  a  single  proprietor. 

August  0.  180-. 

The  following  invoices  have  been  approved,  checked  with  the  goods  and  audited.    Enter 

them  in  the  Journal. 

A.  P.  Root  &  Co.  (No.  8),  Aug.  :i,  2/10,  net  30  days,  |t2130.70.     (Raw  material.) 

George  Proctor  (No.  9),  Aug.  3,  net  30  days,  $19.85.     (Bands  &  Boxes.) 

Following  are  the  sales  for  the  past  week.     Make  the  proper  record  on  the  Order  Sheets 

and  enter  in  the  Sales  Book. 


I 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


183 


3d,  Heywood  &  Co.,  regular,  10  doz.  1316;  5  doz.  1311;  3  doz.  1130. 

3d,  Hare  &  Smith  (successors  to  Jas.  Hare),  regular,  5  doz.  1316;  5  doz.  1136;  5  doz. 
931.  Transfer  the  balance  of  Jas.  Hare's  order  to  a  new  Order  Sheet.  Write  on  the  old 
order:  "Succeeded  by  Hare  &  Smith;  see  order  number  5." 

The  following  orders  have  been  received : 

3d,  Heywood  &  Co.,  regular,  10  doz.  each  of  numbers  1309,  1311,  1316,  931,  930,  936, 
953,  1101,  1106;  to  be  shipped  not  later  than  Aug.  8th. 

Hare  &  Smith,  regular,  35  doz.  1311. 

Henry  J.  Graves  Sons,  regular,  10  doz.  1309;  10  doz.  1316;  5  doz.  931;  3  doz.  916;  1 
doz.  1111.  Cancel  their  old  order  for  the  remaining  40  doz.  of  number  1136.  This  you 
will  do  by  writing:  "Canceled  Aug.  5,  189-,  by  letter,"  in  red  ink  on  the  order;  then  file 
it  away  for  future  reference.  In  canceling  an  order  always  be  sure  to  state  whether  it  was 
countermanded  by  letter  or  in  person.  In  case  of  litigation  an  order  given  by  letter  would  be 
a  question  of  fact,  while  an  order  given  in  person  would  require  evidence  to  substantiate  it. 

The  samples  sent  to  Fred.  Sherman  &  Co.,  on  the  14th  ult.,  have  been  returned  by 
express,  charges  prepaid.  Make  an  entry  in  the  Journal  that  will  cancel  the  entry  made  in 
the  Sales  Book  at  the  time  the  goods  were  sent.  Be  sure  to  write  an  appropriate  explana. 
tion  of  this  entry;  remember  that  the  explanation  is  the  essential  ])art  of  every  bookkeeping 
record.  In  business  when  goods  are  returned  frequently,  a  special  Goods  Returned  Book 
may  be  provided.  An  ordinary  Invoice  Book  will  serve  the  purpose,  as  in  it  the  returned 
bills  may  be  pasted,  and  posted  to  the  credit  of  the  jsroper  ledger  accounts.  The  monthly 
footings  would  be  posted  to  the  debit  of  Merchandise  account. 

You  and  your  teacher  will  each  subscribe  for  50  shares  of  the  Treasury  Stock.  Both  of 
you  should  sign  the  Subscription  List  for  the  proper  amount.  We  will  now  assume  that 
you  have  paid  for  your  stock  and,  hence,  are  entitled  to  your  Certificates  of  Stock.  Fill  in 
two  certificates,  numbering  them  5  and  6.  Be  sure  to  fill  the  stub  properly.  Deliver  the 
teacher's  certificate,  getting  him  to  sign  for  it  on  the  stub.  Detach  your  certificate  after 
you  have  signed  for  it. 

Next  make  the  entry  in  the  Stock  Ledger,  debiting  Capital  Stock  for  $10000  and  credit 
yourself  and  your  teacher,  each  for  $5000.  This  completes  the  entries  in  the  books  of 
official  record. 

On  your  regular  books  debit  Subscription  account  in  the  Journal  and  credit  Treasury 
Stock  for  §10000.  In  writing  an  explanation  for  this  entry,  be  sure  to  specify  to  whom  the 
stock  was  sold. 

The  Petty  Cash  Book  contains  the  following  records;  enter  them  in  the  regular  Cash 
Book: 


2  Jas.  Hare,  .July  13th,  less  5%, 

3  Henry  J.   Graves  Son,  .July  12th 
and  31st,  less  5  and  6%, 

Subscription,  Teacher  5000 

Student  5000 

Mdse.,  Cash  sales  for  week. 


Post  the  books  and  check  over  the  posting. 


399 

25 

3 
3 

232 

97 

6 

10000 

00 

314 

90 

George  Proctor,  Invs.  No.  4  &  7, 
Expense,  Inv.  of  blank  books, 
E.xpense,  cleaning  office  5.00, 
desk  14.00,  postage  1.10, 
A.  P.  Root  &  Co.,  Inv.  No. 8,  less  2%, 


68 

35 

20 
2088 


90 

75 

10 
09 


August  13,  189-. 

The  following  sales  have  been  made  during  the  week. 

8th,  Heywood  &  Co.,  regular,  35  doz.  1316;   15  doz.  1311;  11  doz.  1309;  5  doz.  1136; 


184 


oKKICE    RUUTINE    AM)    liUUK  KEEPING. 


5  doz.  931;  5  doz.  'J'iO:  .i  doz.  930;  5  do/..  953;  5  doz.  1101;  5  doz.  1106.  It  will  be  neces- 
sary to  make  recordi<  on  both  of  their  ordor.s  (ininibers  1  and  (J).  Observe  these  instructions 
in  tlie  future. 

10th,  llenrv  J.  Graves  Sons,  refrular.  in  doz.  ViO'J:  I'J  doz.    1200;  19  doz.    953;  2  doz. 
91C;  1  doz.  nil. 

lUh,  Hare  &  Smith,  regular,  25  doz.  1126;  10  doz.  1211. 

12tli,  Allen  &  Jewett  (post  to  Sundry  Accounts  Receivable),  one-twelfth  doz.  each  of  the 
following  number.^:  1211,  1209,  1126,  931,  953,  916,  1111,  1101,  llOG. 

The  following  invoices  have  been  received,  checked  with  the  goods  ami  audited.     Enter 
them. 

Sweet,  Sharp  &  Co.  (No.  10),  Aug.  10,  5  days  net,  *I6(i.40.     (Raw  Material.) 
B.  G.  Green  way  (No.  11),  Aug.  9,  net  30  days,  |;124.rS.     (Raw  Material.) 
George  Proctor  (No.  12),  Aug.  11,  30  days  net,  *S3.17.     (Bands  &  Bo.xes.) 
Garson  &  Wood  (No.  13),  Aug.  12,  30  days  net,  $65.     (Furniture  &  Fi.xtures.) 
Clarence  Stoner  (No.  14),  Aug.  8,  2/10,  net  30  days,  S70.40.      (Haw  .^[aterial.) 
The  Petty  Cash  Book  contains  the  following  records: 


Win.  II.  Lestfr,  July  ICtli,  less  Hf, 
1  Icy  wood  ».t  Co.,   Auc.  3il,  less  6J, 
lliirc  >.t  Sraitli,  Aug.  ijd,  less  6J, 
Mdse.,  casli  sales  for  week, 


845 

74 

8 

231  24 

148 

05 

55 

21 

9 

11 
13 
13 

14 


30 

00 

15 

00 

166 

40 

74 

87 

17 

80 

195 

00 

75 


Expense,  gas  liill,      4.50 

matting,      5.75 

sliitionery,  4.50 

Labor,     advanced  II.  N.  Peck,  15,00 

Rosa  James,    5.00 

Floyd  Long,  10.00 

Salary,  advanced  bookkeeper. 

Sweet,  Sliarpit  Co.,  Inv.  No.  10,  Net. 

Clarence  Sloner,  luv.  No.  14,  less  2^., 

E.vpense,  bill  for  pUinitiinir 

and  repairs, 

Real  Estate,  painting  mill, 

Post  the  books  and  check  over  your  po.«ting. 

AiGUST  20,  189-. 

The  sales  for  the  week  arc  as  follows;  enter  them  in  the  Sales  Book  and  on  the  Order 
Sheets. 

15tli,  Henry  J.  Graves  Sons,  regular,  12  doz.  1206;  10  doz.  1210;   5  doz.  931. 

Ilare  &  Smith,  regular,  5  doz.  1216;  15  doz.  1211. 

The  following  order  has  been  received: 

Henry  J.  Graves  Son.s,  regular,  25  doz.  1206;  50  doz.  931.  Enter  on  an  Order  Sheet. 
They  also  give  instructions  to  cancel  the  Ijalanco  of  number  953  on  their  previous  order. 

The  Petty  Cash  Book  contains  tJic  following  records: 


14 
15 


AV 


n. 


Chamberlain,  Inv.  of  July 
12lli  &  ISth,  le.<s.5?, 
Thos.  K.  Harrington,  Inv.  Jidy  17tli, 
less  5;*, 


Post  the  books  and  check  over  your  posting. 


813 

31 

14 
17 

837 

19 

Expense,  13  tons  coal. 
Expense,  carpel  for  office, 


66 
13 


00' 
18 


August  27,  189-. 

The  balance  of  the  goods  due  Heywood  &  Co.  Iiave  been  shipped.     Make  the  proper 
records  on  the  Order  Sheets  and  in  the  Sales  Book. 


23 
24 
25 


OFFICE    ROUTINE    .WMi     F.OOK  KEEPING. 
The  Pcttv  Cash  Book  'contains  tlie  rollowini;-  I'ocords: 


Merchamiisc,  cash  sale, 

Hare  &  Smith.  Iiiv.   Auir.  ll'h,  less 

5%, 
Henry  J. Graves  Sons,  Inv.  Aug.  10th, 

less  5<f, 
Birch  &  Sliellers,  Inv.  July  l!)th,  less 

5f. 


Post  the  books  luul  check  over  vour  i)<)Stiiit!'. 


34 

78 

21 
33 

328 

94 

24 
26 

538 

17 

383 

37 

Expense,  water  tax, 

I^alior,  advanced  A.  J.  Camp,  5.00 
Frank  Hoyce,  5.00 
Erma  Price,     15.00 

.1.  A.  Ijuman  &  Co.,  in  full. 


185 


17 


25 
5000 


00 
00 


August  31,  189-. 

The  following  sales  have  been  made;  enter  them  on  the  Order  Sheets  and  in  the  Sales 
Book. 

38th,  Henry  J.  (rraves  Sons,  balance  of  their  order. 

Hare  &  Smith,  balance  of  their  order. 

The  following  order  need  not  be  entered  on  an  Order  Sheet  as  it  was  tilled  on  the  day  it 
was  received.  Miinst)n  &  Holly,  Aug.  .31,  regular,  50  doz.  936;  50  doz.  941;  50  doz.  953; 
100  doz.  95-2;  140  doz.  931. 

The  folk)wing  invoices  have  been  received,  cliecked  Avith  the  goods  and  audited. 

Sampson  &  Co.  (No.  15),  Aug.  26,  30  days  net,  $43.75.     (Buttons.) 

George  Procter  (No.  16),  Aug.  30,  30  days  net,  *46.50.     (Bands  &  Boxes.) 

The  time  of  the  employees  as  taken  from  the  foreman's  Time  Books  is  as  follows.  Enter 
it  in  the  August  column  of  the  Pay  Roll  Book. 

Silking  Depakt.ment,  Time  Book  "A."  Amanda  Connor,  $40. 80;  Carrie  Lyons,  135.60; 
Bertha  Polk,  $50.50. 

Hemming  Department,  Time  Book  '■  B."  Maggie  Allard,  $50.75;  Rosa  James,  #38.40 
(record  the  -imount  paid  on  the  9th);  Ellen  Little,  $43.20;  Ellen  Meunier,  $55.30;  Mattie 
Allen,  $54.20;  Amanda  Little,  $40.00. 

Making  Department,  Time  Book  ''C.'"  Floyd  Long.  $81.50  (record  the  ariKJunt  paid 
on  the  9th);  F.  G.  Prine,  $80.75;  Geo.  H.  Bush,  $71.40;  \{.  Folts,  $70.30. 

Cutting  Department,  Time  Book  "  D."  H.  N.  Peck,  $73.50  (record  the  amount  |iaid 
on  the  9th);  Austin  J.  Camp,  $85.30  (record  the  amount  advanced  on  the  23d). 

Contract  Work  per  Job  Book.  Mrs.  Mary  Hostler,  $51.70;  Maude  Elliot,  $45.25; 
Jas.  Bell,  $58.00;  Robt.  Jones,  $80.40;  Bessie  Nichols,  $51.38;  Clara  Frey,  $50.10;  Frank 
Royce,  $49.65  (record  the  amount  advanced  on  the  24th);  Jessie  Weeks,  $49.10;  Minnie 
Dunnj  $48.90;  Erma  Price,  $55.00  (record  the  amount  advanced  on  the  26th);  Lena  Frey, 
$41.37^  Thos.  Burns,  $64.38  (record  the  amount  advanced  on  the  28th);  Rueben  Doty, 
$35.50;  Lizzie  Patch,  $64.20;  A.  K.  Chandler,  $70.25;  Timothy  Hunt,  $69.15;  Geo.  Mosby, 
$55.18;  Nina  Eckler,  $43.20;  Kate  Schwartz,  $46.10  (record  the  amount  advanced  on  the 
28th);  Chas.  Heald,  $61.94;  Wm.  Stum]),  $65.13;  Jos.  Helm,  $(;4.08;  Harry  Eckler,  $55.07; 
John  Dunn,  $61.19;  D.  F.  Kellog,  $06.30;  Arthur  Fulmer,  $57.18  (record  the  amount 
advanced  on  the  28th);  L  H.  Covert,  $51.28;  Daniel  Brevier,  $55.00. 

Foot  and  rule  the  Pay  Roll.     Verify  your  work  by  going  over  it  a  second  time. 


186 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


The  Petty  Cash  Book  contains  the  following  records: 


27 

Traveling  Ex|K-nsc,  Hermann. 
I.iibor,  advanced  Thos.   Burns,  20.00 

•2H 

■'      Kate  Schwartz,    5.00 

••     Arlbur  Fulnier,  10.00 

,2'J 

Expense,  painting  and  papering. 

HI 

Freight  &  Cartage,  for  mo. 

:!l 

Salaries,  Cloud,                           125.00 
Herman,                       100.00 
Mackey,                          40  00 
Williams,                       150  00 
Student,                          45.00 

31 

Labor,  balance  of  pay  roll, 

31 

Labor,  mill  pay  roll. 

158 


48 


35,  0<) 

19  I  89 

15«    29 


460   00 


2348 
289 


08 
20 


Foot  and  rule  the  Casli  Book:  the  cash  on  liand  is:  bank,  ^-.'0740.00;  safe,  |;l22.4r.    Foot 
and  rule  the  Sales  Book. 

Post  the  books  and  check  over  the  posting.     Take  a  trial  balance  and  iiave  it  approved. 

Preparatory  to  closing  the  books  an  inventor}'  has  been  taken,  of  which  the  following  is 
an  abstract. 

Abstract  of  Inventories,  Aug.  SI,  189-. 


Real  Estate. 
Machinery, 
Furniture  &  Fixtures, 
Good  Will, 
Traveling  Expense, 
Silk  Accouni, 
Raw  Material, 
Merchandise, 


amount  not  used. 


per  inventory  sheets. 


32000 

00 

44818 

20 

450 

00 

24.512 

79 

19 

50 

15 

00 

847 

75 

712 

50 

Write  the  above  inventories  in  the  jiroper  ledger  accounts.  Transfer  the  balances  of  the 
accounts  that  enter  into  the  cost  of  merchandise  to  the  debit  of  the  Merchandise  account. 
Next  make  a  Balance  Sheet,  following  the  directions  given  for  the  month  of  July  and  those 
given  herewith.  Tlic  amounts  of  Capital  Stock,  Treasury  Stock  and  Subscription  account 
are  to  be  transferred  to  the  Kesourcc  and  Liability  columns,  directly  opposite  where  they 
appear  in  the  first  and  second  money  columns.  When  the  net  gain  is  ascertained,  it  is  to 
be  added  to  the  footings  of  the  Loss  and  Liability  columns,  and  is  to  be  designated  as 
"Net  Gain." 

Close  all  accounts  showing  losses  or  gains  into  the  Loss  &  Gain  account.  The  Loss  & 
Gain  account  is  not  to  be  closed  until  the  Board  of  Directors  have  met  and  decided  what 
shall  be  done  with  the  net  gain. 

In  business  the  Balance  Sheet  and  books  would  be  audited  by  the  treasurer,  or  some 

one  under  his  direction,  and  a  certificate  attached  to  the  Balance  Sheet,  similar  in  form  to 

the  following: 

Aug.  31,  189-. 

(Your  place  here.) 

To   TIIK    15o.\l(l)   OF    DiUECTOUS: 

I  hereby  certify  that  the  accompanying  statement  of  the  business  is  a  correct  abstract  of  the  resources 
and  liabilities  of  the  Luman  Glove  Company.  The  resources  and  liabilities  were  ascertained  by  estimating 
and  calculating  the  commodities  on  hand  at  their  actual  cash  valuation;  the  accounts  receivable  and 
accounts  payable  are  given  as  they  appear  on  the  Ledger;  there  have  been  no  bad  debts  to  date  and  I  believe 
that  all  amounts  now  outstanding  will  be  paid  in  full. 

liespectfuUy  submitted, 

C.  R.  Evans,  Treamtrer. 


I 


OFFICE    ROUTINE    AND    BOOKKEEPING.  187 

Write  a  certificate  similar  to  the  above  at  tlie  foot  of  your  Balance  Sheet.  Present  your 
books  for  approval,  and  get  your  teacher  to  sign  for  C.  R.  Evans  as  Treasurer.  The  Balance 
Sheet,  and  such  other  books  as  they  may  wisli  to  see,  are  now  ready  to  be  presented  to  the 
Board  of  Directors  for  their  consideration. 

September  1,  189-. 

In  business  dividends  are  usually  declared  annually  or  semi-annually;  in  tliis  business, 
for  the  purpose  of  illustration,  a  dividend  will  be  declared  at  the  end  of  the  first  montli. 
At  a  meeting  of  the  Board  of  Directors  the  following  resolution  was  adopted: 

_ Sept.  1,  1S9-. 

(Your  place  here.) 

Resolved,  That  based  upon  the  showing  of  the  previous  month's  business  as  exhibited  by  the  Balance 

Sheet  and  Books,  that  there  be  declared  a  dividend  equivalent  to  6  per  cent,  per  annum,  or  |  of  one  per 

cent,  for  the  past  month,  and  that  the  remaining  balance  of  the  Loss  &  Gain  account  be  closed  to  Undivided 

Profits  account. 

Thos.  H.  Bbtts,  Secretary.  H.  T.  Williams.  Premient. 

In  compliance  with  the  above  resolution  you  will  now  calculate  the  dividend  on  the 
amount  of  stock  subscribed,  as  shown  by  the  Subscription  Book  and  the  Subscription 
account  in  the  Ledger.  Compile  a  Dividend  Sheet  on  legal  cap  paper  referring  to  the 
illustration  on  page  179.  Next  debit  Loss  &  Gain  account,  in  the  Journal,  for  the  amount 
of  the  net  gain,  and  credit  Dividends  account  for  the  amount  of  the  dividend,  and  Undivided 
Profits  account  for  the  balance. 

The  dividends  as  exhibited  by  the  Dividend  Sheet  have  been  paid  and  a  record  made  in 
the  Petty  Cash  Book;  enter  .same  in  the  regular  Cash  Book,  then  balance  and  rule  the  same. 


Dividends,  as  per  Dividend  Sheet, 


650 


Post  the  books  and  check  over  your  posting. 

You  will  now  sell  your  stock  to  H.  T.  Williams  and  get  your  teacher  to  sell  his  stock  to 
some  student.  Fill  in  tlie  blank  forms  of  assignment  on  the  back  of  certificates  5  and  (i. 
You  and  your  teacher  will  now  assign  your  stock  in  the  presence  of  a  witness. 

Paste  certificates  5  and  6  to  the  original  stubs  and  cancel  the  seals.  Fill  in  the  forms  of 
transfer  on  the  stubs,  which  should  be  signed  by  yourself  and  your  teacher,  respectively. 
Fill  in  the  third  part  of  the  stubs,  then  write  up  the  new  certificates  (numbers  7  and  8), 
favor  of  the  parties  to  whom  you  sold  the  stock.  Get  the  transferees  to  sign  the  first  part 
of  stubs  7  and  8.     Detach  the  certificates  and  deliver  them  to  the  teacher. 

Make  the  projier  entries  for  the  above  transactions  in  the  Stock  Ledger,  debiting  the 
sellers  and  crediting  the  jnirchasers.  These  transactions  in  no  wise  affect  the  regular  books 
of  the  business.     Do  you  sec  why? 

Your  teacher  will  now  hand  you  the  certificates  of  stock  left  with  him,  which  you  will 
preserve  for  future  reference. 

Examine  your  books  thoroughly  to  see  that  they  are  in  proper  shape  to  be  handed  to  the 
regular  bookkeeper  who  is  to  succeed  you.  As  but  a  few  transactions  have  been  recorded 
since  the  Balance  Sheet  was  made,  no  trial  balance  will  be  necessary.  Render  the  corponi- 
tion  a  bill  for  the  amount  due  you. 

Present  all  books  and  documents  for  examination  and  approval. 


188  OFFICE    ROUTINE    AND    BOOKKEEI'ING. 

LIMITED   CORPORATIONS  AND  JOINT   STOCK   COMPANIES.    - 

Liuiitod  ('(H'lioriitioiis.  There  is  another  kind  of  cor])oration.  known  as  a  limited 
liability  coriioratioii.  A  limited  corporation  differs  from  the  ordinary  corporation,  described 
in  the  preceding  pages,  in  this:  Each  shareliolder  in  jv  limited  liability  corporation  is  indi- 
vidually liable  to  the  creditors  of  the  corporation  for  the  amount  re])rcsented  in  his  certifi- 
cate, until  the  full  amount  of  the  capital  is  paid  in,  and  a  certilicatc  thereof  has  been  made 
and  recorded  with  tiie  proper  officials  as  prescribed  by  law.  If  judgment  is  rendered  and 
not  paid,  jiroceedings  mav  be  instituted  against  any  one  of  the  stockholders  for  an  amount 
equal  to  the  i>ar  value  of  the  stock  he  owns.  Should  a  shareholder  be  retpiired  to  pay  a 
claim,  he  is  entitled  to  recover  from  each  shareholder  such  a  part  of  the  claim  as  each  share- 
holder's stock  is  a  i)art  of  the  cajiital  stock.  When  tlie  capital  is  all  paid  In  the  liability  of 
thostockiiolder  ceases.  Limited  liability  corporations  are  required  by  law  to  use  the  word 
"  Limited  "  after  the  name  of  the  corporation  whenever  or  wherever  the  name  is  used,  either 
written  or  printed:  furthermore,  the  name  of  the  corjioration.  with  the  word  "Limited,"  must 
be  conspicuously  posted  outside  tlie  general  office  and  liraueli  offices.  Limited  corporations 
and  joint  stock  companies  command  a  better  credit  than  do  corporations.     Do  you  see  why? 

Joint  Stock  Coinpanics.  .Joint  stock  companies  are  associations  formed  for  the  trans- 
action of  business,  and  are  intermediate  between  corporations  and  ordinary  partnershii>s. 
They  are  in  fact  partnerships,  and  are  so  considered  in  law,  yet  they  differ  from  the  ordinary 
partnership  in  their  organization.  Formerly  these  comjjanies  were  more  common  than  they 
are  at,  the  present  time.  The  legislatures  of  most  states  have  enacted  general  laws  under 
which  corporations  may  be  readily  and  easily  organized,  consequently  they  have  almost 
entirely  taken  tiie  place  of  joint  stock  comi)anies.  Formerly  it  was  necessary  in  the  organi- 
zation of  a  corporation  to  ajijjly  to  the  legislature  for  a  charter.  Tliis  very  often  involved 
much  delay  and  frequently  large  expense,  hence,  rather  than  await  the  result  of  such  special 
legislation,  the  persons  interested  in  tlie  proposed  business  would  risk  the  responsibility  of 
partners. 

Joint  stock  companies  are  usually  formed  in  preference  to  the  ordinary  partnersliips  when 
the  number  of  persons  interested  is  so  large  as  to  make  it  inconvenient  to  conduct  tiie  busi- 
ness as  is  commonly  done  in  ordinary  ])artnerships.  The  stockiiolders  forming  tiie  comjiany 
usually  draw  u])  an  agreement,  in  which  the  rights  of  members,  among  themselves,  are 
defined  and  regulated.  This  agreement  usually  siiecifies  the  manner  of  forming  the  com- 
pany, the  amount  of  the  cajiital  stock,  the  number  and  value  of  the  shares,  the  manner  in 
which  stock  may  be  transferred,  and  the  election  of  officers  or  agents.  In  this  agreement 
are  also  included  such  other  ])rovisions  as  may  be  deemed  necessary  for  a  proper  manage- 
ment of  the  business. 

Ordinarily  the  members  of  a  joint  stock  company  are  ]>ersonally  liable  for  the  dclits  of 
tlie  conii)any  the  same  as  in  an  ordinary  i)artnersliip.  That  is,  if  tiie  assets  of  tlie  company 
are  exhausted  and  there  are  debts  remaining  unpaid,  each  stockholder  is  liable  to  the  cred- 
itors fur  the  full  amount  of  such  indebtedness.  When  no  statutory  ])rovisions  exist  regu- 
lating the  liability  of  the  stockholders,  their  liability  is  determined  in  the  same  manner  as 
in  the  case  of  an  ordinary  partnership. 

The  business  of  a  joint  stock  company  is  usually  transacted  by  directors  or  trustees  chosen 
by  the  stockholders.  These  comiianics,  unless  they  are  organized  under  the  laws  of  the  State 
of  New  York,  can  not  sue  or  be  sued  in  the  name  of  the  officers;  suit  must  be  brought 
against  the  members  individually  or  collectively. 


OFFICE    ROUTINE    AND    BOOKKEEPING.  189 

The  books  of  a  joint  stock  company  need  in  no  wise  be  different  from  those  of  a  corpora- 
tion. Books  of  officiid  record  (stock  books)  are  kejit,  the  stock  issued  is  signed  by  the 
oiBcials,  .and  tlie  profits  are  distributed  to  tlie  stockliolders  iu  tlie  form  of  dividends,  the 
same  as  in  a  corporation.  The  main  difference  between  a  corporation  and  a  joint  stock 
company  is  that  the  latter  is  not  created  by  the  state.  A  joint  stock  company  has  no  right 
to  use  a  common  seal. 

Joint  Stock  Companies  in  New  York.  In  New  York  State  the  formation  of  joint 
stock  companies  and  tlie  liability  of  the  stockholders  is  regulated  by  statute,  and  they  are 
given  certain  coruorate  privileges.  A  company  so  formed  may  sue  and  bo  sued  in  the  name 
of  the  president  or  treasurer,  and  the  members  are  not  individually  liable  until  a  judgment 
has  been  recovered  against  the  company,  and  an  execution  issued  thereunder  has  been 
returned  unsatisfied.  These  companies  are  not  dissolved  by  the  death  of  a  member  or  by 
the  transfer  of  his  stock,  as  is  the  case  in  the  ordinary  joint  stock  comjiany  or  partnership. 

Carefully  review  tlie  work,  beginning  on  i>age  117,  and  be  prepared  to  answer  the  fol- 
lowing questions: 

Questions. — What  is  a  department  store?  What  advantages  are  there  in  keeping  a 
department  store?  What  reason  can  you  assign  for  subdividing  the  Merchandise  accoiint  in 
a  department  store  business?  What  is  the  object  of  dividing  the  counting  room  work  in  a 
large  business  into  departments?  What  reasons  can  you  assign  for  keeping  accounts  with 
all  the  other  ledgers  in  the  General  Ledger?  AVhat  is  the  nature  of  the  work  usually  done 
in  the  Cash  Department?  In  the  Credit  Man's  Department?  In  the  Time  Sales  Depart- 
ment? In  the  Purchases  Department?  Describe  the  Abstract  Purchase  Book.  Why  is  it 
not  a  convenient  form  of  record  when  there  are  many  departments?  What  forms  may  be 
substituted  when  the  departments  are  numerous?  Describe  the  Department  Charges  form. 
What  are  the  advantages  of  using  an  Abstract  Purchase  Ledger?  What  is  the  object  in 
keeping  track  of  the  due  date  and  discount  time  limit  on  bills  purchased  and  sold?  Describe 
the  Time  Index.  What  advantage  is  there  in  using  Sales  Tickets?  Describe  the  Clerks' 
Summary  Sheet.  What  is  the  object  in  keeping  these  Summary  Sheets?  Describe  the 
routine  of  a  sale  on  account.  What  forms  may  be  used  to  advantage  in  recording  Time 
Sales?  Describe  an  Abstract  of  Time  Sales  sheet.  What  reason  can  you  assign  for  making 
a  Summary  of  the  Daily  Sales?  What  is  the  object  in  keeping  a  record  of  the  Clerks'  daily 
sales?  Explain  how  you  would  determine  from  what  department  a  sale  was  made.  How 
are  the  clerks  usually  designated  in  a  large  establishment?  Explain  the  method  of  keeping 
a  Sales  Ledger.  Where  do  the  records  in  the  Sales  Ledgers  originate?  What  reasons  can 
you  assign  for  keeping  accounts  with  the  Sales  Ledgers  in  the  General  Ledger?  Explain 
the  method  of  verifying  these  accounts  with  the  respective  Ledgers.  Describe  the  routine 
of  a  cash  sale.  Draw  from  memory  an  Abstract  of  Cash  Sales  form.  From  what  sources  is 
the  Abstract  Cash  Account  compiled?  Describe  the  detailed  statements  used  in  the  Cash 
Department.  What  is  the  object  of  a  Pay  Roll?  What  is  a  Pay  Roll  Memorandum?  How 
are  returned  goods  recorded?  Describe  the  Credit  Memoranda  account.  How  are  rebates 
recorded?  What  is  the  object  of  a  Sundry  Account?  What  effect  docs  the  death  of  a  part- 
ner have  on  a  partnership?  What  is  the  object  of  making  abstracts  of  the  Purchases  and 
Sales  Ledgers  before  taking  a  trial  balance  of  the  General  Ledger?  What  is  meant  by  a 
Liability  Inventory?  Xame  some  accounts  that  may  have  Liability  Inventories.  Explain 
the  method  of  closing  an  account  that  has  a  Liability  Inventorv. 


l',t(»  UKFICK     KOUT1NI-,    AM>     liO(  )K  KKKIMN'G. 

Name  some  of  tlie  books  especially  aihipt.cd  to  the  manufacturing  business.  Why  is  it 
customary  to  keep  separate  accounts  with  the  items  that  enter  into  the  cost  of  merchandise? 
What  is  done  with  the  balances  of  such  accounts?  What  is  the  object  of  the  Cost  Book? 
What  advanta<j;es  do  Order  Sheets  have  over  an  Order  Book?  In  wh;:t  way  does  an  Impres- 
sion Sales  Book  save  labor?  What  reason  can  you  assign  for  designating  gloves  by  stock 
numbers  instead  of  writing  a  description  of  same?  Describe  the  Cutters  Stock  Book.  What. 
is  the  object  of  Stock  Tickets?  What  is  the  difference  between  a  Time  Book  and  a  Pay  Roll 
Book?  Describe  the  Monthly  Pay  Roll.  What  is  the  object  in  keeping  a  Petty  Cash  Book? 
AVhat  object  is  there  in  keeping  an  account  with  the  Mill  or  Tanning  department  of  a  manu- 
facturing business?  Describe  the  method  of  closing  the  books  in  a  manufacturing  business 
When  the  accounts  receivable  and  siccounts  payable  are  numerous  how  are  they  entered  on 
the  Balance  Sheet? 

What  is  a  corjioration?  Xame  some  of  the  advantages  (if  a  eorpdralioii.  How  are  cor- 
porations formed?  Which  method  is  the  more  convenient  and  why?  Do  you  know  what 
the  requirements  for  incorporation  are  in  your  State?  How  do  they  compare  with  the  require- 
ments in  Kew  York  State?  M'hat  is  a  Certificate  of  Incorporation?  What  difference  is  there 
between  a  Certificate  of  Incorjjoration  and  Articles  of  Incorporation?  Describe  the  method 
of  forming  a  corporation,  step  by  step,  in  your  State.  With  what  officials  are  the  Certificates 
of  Incorporation  to  be  filed?  What  is  the  longest  time  for  which  a  corporation  may  be 
formed  in  your  State?  How  much  of  the  capital  stock  must  be  subscribed  for  before  the 
corporation  can  do  business?  What  are  the  further  requirements  in  your  State?  How  is  the 
business  of  a  corporation  transacted?  By  whom  are  the  directors  of  a  corporation  elected? 
Who  elects  the  officers?  How  is  the  number  of  votes  that  a  stockholder  is  entitled  to  deter- 
mined? Name  the  officers  usually  elected.  AV'hat  are  the  duties  of  the  President?  Secretary? 
Treasurer?  In  what  respects  does  corporation  bookkeeping  differ  from  the  bookkeejiing  of 
a  business  conducted  as  a  partnership?  What  is  meant  by  the  Capital  Stock  of  a  corporation? 
Treasury  Stock?  Subscribed  Stock  or  Subscription  account?  Why  are  no  accounts  with 
the  stockholders  to  repri'sent  their  investments  kept  on  the  regular  books?  Explain  the 
method  of  closing  corporation  books.  What  are  the  books  of  official  record  and  by  whom 
are  they  kept?  Describe  the  Minute  Book.  Subscription  Book.  Installment  Scrip  Book. 
Stock  Certificate  &  Transfer  Book.     Stock  Ledger.      Dividend  Book  or  Dividend  Sheet. 

What  is  a  limited  corporation?  A  joint  stock  company?  Why  do  limited  corporations 
and  joint  stock  comjianies  command  a  better  credit  than  do  corporations?  AVhat  is  the 
difference  between  a  joint  stock  company  organized  under  the  laws  of  New  York  and  those 
organized  in  other  States? 


BANKING 


JT 


FROM 


NEW  COMPLETE  BOOKKEEPING. 


19L 


CcFTfRioHT,  isao, 

BY 

Williams  &  Uooers. 


193 


OFFICE     ROUTINE    AND    BOOKKEEPING.  193 

BANKING. 


A  Ban  3r  is  a  dealer  in  money.  The  business  of  Ijunking  consists  in  receiving  deposits 
of  money  i  whicli  interest  mayor  may  not  be  allowed;  in  making  advances  of  money, 
principall;  n  the  way  of  discounting  notes  and  other  commercial  paper;  and  in  effecting 
the  transission  of  money  from  one  ])lace  to  another.  The  disposable  means  of  a  bank 
consist  of  lie  capital  i)aid  in  by  the  shareholders;  the  money  deposited  with  it  by  its  cus- 
tomers; t  notes  it  can  circulate;  the  money  it  receives  in  the  course  of  transmission,  and 
which,  of  ourse,  it  must  rejiay  in  another  ])lace.  The  profits  of  a  bank  arise  mainly  from 
the  foUov  ig  sources:  discount,  interest,  dividends,  exchange  and  collection. 

Bank)  I  associations  are  divided  into  two  general  classes:  Public  bi^nks  and  Private 
banks.  iblic  banks  are  also  of  two  classes:  Those  organized  under  the  laws  of  the  State 
in  which  hey  are  located,  and  those  organized  under  the  laws  of  the  United  States.  The 
former  a  called  State  banks  and  the  latter  are  called  National  banks.  State  banks  may 
be  divide  into  Deposit  and  Discount  banks.  Savings  banks  and  Trust  companies.  Private 
banks  ai  conducted  by  individuals  and  are  unincorporated.  State  and  National  banks  are 
incorjjoi  ed  institutions. 

A  Ntional  IJaiik  is  a  bank  organized  under  the  National  Banking  Act.  This  does 
not  mea  that  the  government  owns  or  conducts  National  banks,  but  only  authorizes  their 
creatior  md  prescribes  their  mode  of  doing  business.  Every  association  doing  business 
under  <  is  law  is  governed  by  tiie  same  jirinciples,  is  subject  to  the  same  inspection,  uses 
the  sau  forms  in  making  rejjorts  to  the  Treasury  Department  at  Washington,  and  is  under 
the  san  penalties  for  the  violation  of  any  requirement  of  the  National  Banking  Law. 

Th(  National  banking  system,  based  on  the  system  of  banking  in  the  State  of  New  York 
in  186i  is  the  principal  banking  system  in  the  country,  and  the  only  one  by  which  banks 
now  isie  notes  of  their  own.  By  the  National  banking  law  banking  associations  may  be 
formed  jy  five  or  more  ])ersoiis  wlio  must  specify  in  tiieir  articles  of  association  the  several 
object.' -'or  thus  uniting.  They  mr.st  make  "  an  organization  certificate"  specifying  the 
name  i mined  by  the  association;  its  place  of  business;  the  amount  of  its  capital  stock  and 
the  nn  ber  of  shares  into  which  it  is  divided;  the  names  and  residences  of  the  shareholders 
and  tl  number  of  sliares  held  by  each;  a  declaration  that  the  certificate  is  made  to  enable 
them     avail  tiiemscdves  of  tlu^  advantages  of  tlie  act. 

Tl  association  may  sue  and  l>e  sued,  elect  directors,  who,  in  turn,  may  elect  a  president, 
vice-p  sident,  cashier  and  other  officers;  discount  and  negotiate  promissory  notes,  drafts, 
bills  c  exchange,  and  other  evidences  of  debt;  receive  deposits,  buy  and  sell  exchange,  coin 
and  b  lion;  loan  money  on  j)ersoMal  security,  issue  and  circulate  its  own  notes,  and  make 
all  nc  Iful  by-laws  not  inconsistent  with  the  Banking  Act. 

T  're  must  be  at  least  five  directors.  EmcIi  director  must  own  at  least  ten  shares  of  the 
stock  and  he  holds  his  office  until  the  election  and  qualification  of  his  successor.  Annual 
meet  gs  are  held  in  January.  The  capital  stock  is  divided  into  shares  of  $100  each,  and 
are  t  nsferable.  The  liability  of  a  shareholder  is  limited  to  a  sum  equal  to  the  par  value 
of  h  stock.  Before  beginning  business,  fifty  per  cent,  of  the  capital  stock  of  an  associa- 
tion ust  be  paid  in,  and  ten  ]ier  cent,  of  the  remainder  monthly  until  all  is  paid.  After 
the  iiociatiou  is  organizeil  and  fifty  per  cent,  of  the  capital  stock  paid  in.  the  next  step  is 


Copyhiout,  ISM, 

HY 

Williams  &  Kogeiis. 


193 


I 


OFFICE     ROUTINE    AND    BOOKKEEPING.  193 


BANKING. 


A  Banker  is  a  dealer  in  money.  The  business  of  banking  consists  in  receiving  deposits 
of  money  oti  whicli  interest  may  or  may  not  be  allowed;  in  making  advances  of  money, 
principally  in  the  way  of  discounting  notes  and  other  commercial  jiaper;  and  in  effecting 
the  transmission  of  money  from  one  place  to  another.  The  disjiosable  means  of  a  bank 
consist  of  the  capital  paid  in  by  the  shareholders;  the  money  deposited  with  it  by  its  cus- 
tomers; the  notes  it  can  circulate;  the  money  it  receives  in  the  course  of  transmission,  and 
which,  of  course,  it  must  rejiay  in  another  jilacc.  The  profits  of  a  bank  arise  mainly  from 
the  following  sources:  discount,  interest,  dividends,  exchange  and  collection. 

Banking  associations  are  divided  into  two  general  classes:  Public  banks  and  Private 
banks.  Pul)lic  banks  are  also  of  two  classes:  Those  organized  under  the  law.s  of  the  State 
in  which  they  are  located,  and  those  organized  under  the  laws  of  tlie  United  States.  Tlie 
former  are  called  State  banks  and  the  latter  are  called  National  banks.  State  banks  may 
be  divided  into  Deposit  and  Discount  banks.  Savings  banks  and  Trust  companies.  Private 
banks  are  conducted  by  individuals  and  are  unincorporated.  State  and  National  banks  are 
incorporated  institutions. 

A  National  Bank  is  a  bank  organized  under  the  National  Banking  Act.  This  does 
not  mean  that  the  government  owns  or  conducts  National  banks,  but  only  authorizes  their 
creation  and  prescribes  their  mode  of  doing  business.  Every  association  doing  business 
under  this  law  is  governed  by  the  same  principles,  is  subject  to  the  same  inspection,  uses 
the  same  forms  in  making  reports  to  the  Treasury  Department  at  Washington,  and  is  under 
the  same  penalties  for  the  violation  of  any  requirement  of  the  National  Banking  Law. 

The  National  banking  system,  based  on  the  system  of  banking  in  the  State  of  New  York 
in  18(J2,  is  the  principal  banking  system  in  the  country,  and  the  only  one  by  which  banks 
now  issue  notes  of  their  own.  By  the  National  banking  law  banking  associations  may  be 
formed  by  five  or  more  ])ersons  who  must  specify  in  their  articles  of  association  the  several 
objects  for  thus  uniting.  They  must  make  "  an  organization  certificate"  specifying  the 
name  assumed  by  the  association;  its  place  of  business;  the  amount  of  its  capital  stock  and 
the  number  of  shares  into  which  it  is  divided;  the  names  and  residences  of  the  shareholders 
and  the  number  of  sJiares  held  by  each;  a  declaration  that  the  certificate  is  made  to  enable 
them  to  avail  themselves  of  the  advantages  of  the  act. 

The  association  may  sue  and  be  sued,  elect  directors,  who,  in  turn,  may  elect  a  president, 
vice-president,  cashier  and  other  officers;  discount  and  negotiate  promissory  notes,  drafts, 
bills  of  exchange,  and  other  evidences  of  debt;  receive  deposits,  buy  and  sell  exchange,  coin 
and  bullion;  loan  money  on  personal  security,  issue  and  circulate  its  own  notes,  and  make 
all  needful  by-laws  not  inconsistent  with  the  Banking  Act. 

There  must  be  at  least  five  directors.  Each  director  must  own  at  least  ten  shares  of  the 
stock,  and  he  holds  his  office  until  the  election  and  qualification  of  his  successor.  Annual 
meeting?  are  held  in  January.  The  capital  stock  is  divided  into  shares  of  SI 00  each,  and 
are  transferable.  The  liability  of  a  shareholder  is  limited  to  a  sum  equal  to  the  par  value 
of  his  stock.  Before  beginning  business,  fifty  per  cent,  of  the  capital  stock  of  an  associa- 
tion must  be  paid  in,  and  ten  ])cr  cent,  of  the  remainder  montlily  until  all  is  paid.  After 
the  association  is  organized  and  fifty  per  cent,  of  the  capital  stock  paid  in,  the  next  step  is 


194  UKl-ICE    KOUTINE    AND    BOUKKEliriXG. 

the  transmission  by  tlic  association  of  a  certificate  to  tlie  Comptroller  of  the  Currency  stating 
that  all  the  i)rovisions  of  the  law  with  reference  to  organizing  a  bank  have  been  observed. 
The  Comptroller  of  the  Currency  then  makes  such  an  examination  as  may  be  thought  neces- 
sary, and  if  he  finds  that  the  law  has  been  properly  conijilied  with,  he  gives  to  the  associa- 
tion a  certificate  to  thai  elfect,  and  that  it  is  authorized  to  begin  business.  This  certificate 
must  be  published  within  si.xty  days  from  tlie  time  of  receiving  it. 

As  a  necessary  preliminary  to  furnishing  notes  for  circulation,  the  Comptroller  of  the 
Currency,  under  the  direction  of  tlie  Secretary  of  the  Treasury,  is  entrusted  with  the 
important  duty  of  engraving  plates  in  the  best  manner  to  guard  against  counterfeiting  and 
fraudulent  alterations,  and  to  print  therefrom  and  number  so  many  circulating  notes  in 
blank  as  may  be  required  to  supply  the  banks  entitled  to  receive  the  same.  After  these 
notes  have  been  signed  by  the  president  or  vice-president,  and  the  cashier,  they  are  issued 
and  circulate  as  money,  and  are  received  at  i)ar  everywhere  in  the  payment  of  taxes,  excises, 
public  lands,  and  all  other  dues  to  the  government,  except  for  duties  on  imports;  and  also 
for  all  salaries  and  other  debts  owing  by  the  United  States,  except  interest  on  the  public 
debt  and  in  redemption  of  legal  tender  notes.  They  are  also  a  legal  tender  for  any  debt  or 
liability  to  every  National  banking  association.  The  notes  which  are  issued  by  National 
banks  are  secured  by  registered  United  States  bonds,  deposited  with  the  Treasurer  of  the 
United  States.  Upon  a  deposit  of  bonds  tlie  association  making  the  same  is  entitled  to 
receive  from  the  Coini)lroller  circulating  notes  equal  in  amount  to  ninety  per  cent,  of  the 
par  value  of  the  United  States  bonds  so  deposited,  but  the  total  amount  of  such  notes  issued 
to  any  association  may  not  exceed  ninety  per  cent,  of  the  amount  of  its  capital  stock  actually 
paid  in. 

Many  National  banks,  es])ecially  those  located  in  some  of  the  large  cities,  do  not  issue 
notes  for  the  reason  that,  with  the  tax  of  one  per  cent,  a  year  upon  the  average  circulation, 
the  expense  of  handling  the  notes,  the  expenses  of  the  redenij)tion  of  the  same,  the  express 
charges,  etc.,  they  find  it  is  not  ])rofitable. 

A  Natioiuil  bank  can  hold  real  estate  under  the  following  conditions,  and  no  others: 
The  building  needful  to  transact  its  business;  land  mortgaged  to  it  in  good  faith  to  secure 
debts  previously  contracted  in  the  course  of  business;  lands  purchased  under  sales  ordered 
by  courts  in  order  to  secure  debts  due  to  the  bank.  In  the  last  three  cjvses  the  real  estate  can- 
not be  held  beyond  live  years.  National  banks  cannot  make  loans  on  the  security  of  their 
own  stock,  excei)t  to  iirevent  a  loss  on  a  debt  previously  contracted,  nor  can  they  pledg(> 
their  own  notes  of  circulation  for  the  purjjose  of  getting  money  to  pay  in  their  capital  stock. 
They  are  subject  to  examination  by  ollicers  appointed  by  the  government.  They  must  make 
rejwrts  to  the  Cosuptroller  of  the  (Currency  according  to  the  forms  which  he  ])rescribes, 
exhibiting  in  detail  the  resources  and  liabilities  of  the  associations  at  the  close  of  business 
on  any  past  day  specified  by  him.  The  Comptroller  is  recpiired  to  call  for  not  less  than  five 
such  reports  during  each  year.  Tiiesc  reports  must  be  verified  by  the  oath  of  the  president 
or  cashier  and  attested  by  the  signatures  of  at  least  three  of  the  directors. 

In  addition  to  the  reports  mentioned  above,  each  association  is  required  to  make  a  sworn 
report  within  ten  days  after  the  declaration  of  any  dividend,  of  the  amount  of  such  dividend, 
and  the  amount  of  the  net  earnings. 

The  National  banking  law  provides  that  semi-annual  dividends  of  the  net  profits  of  any 
National  bank  may  bo  declared  by  the  directors  thereof;  but  that  before  each  dividend 
every  bank  shall  carry  one-tenth  of  its  net  profits  of  the  preceding  half-year  to  its  surplus 
fund  until  it  shall  equal  twenty  per  cent,  of  the  capital  stock. 


i 


OFFlCli    ROUTINE    AND    BOOK  KEEPING.  195 

Fur  a  further  explanation  of  the  National  banking  hxw,  tlie  student  is  referred  to  Bolles' 
Praetical  Banking,  from  which  excellent  work  some  of  the  foregoing  paragrapjis  were 
compiled. 

State  Banks. — A  State  bank  is  a  bank  organized  under  the  laws  of  the  State  in  which 
it  is  located..  The  preliminary  steps  in  organizing  a  bank  under  the  banking  law  of  the 
State  are  much  the  same  as  those  to  be  taken  in  organizing  a  National  bank.  The  sub.scrip- 
tion  list  is  opened,  articles  of  association  and  a  name  are  adopted,  a  Board  of  Directors  and 
ofBcers  are  elected,  just  as  in  the  case  of  a  National  bank.  In  addition  to  the  steps  men- 
tioned, it  is  necessary  that  a  copy  of  the  articles  of  association  be  filed  with  the  Bank  Super- 
intendent of  the  State,  where  there  is  such  an  officer,  or  with  the  Comptroller,  and  another 
copy  in  the  office  of  the  clerk  of  the  county  in  which  the  bank  is  to  be  located. 

Previous  to  July,  1866,  State  banks  issued  notes  which  circulated  as  money,  but  on  that 
date  the  government  imposed  a  tax  of  ten  i)er  cent,  on  the  circulation  of  the  State  banks, 
which  had  the  effect  of  witlidrawing  it  as  the  rate  was  too  high  to  allow  of  any  profit  to  the 
banks  on  it.  Except  as  to  issuing  circulating  notes.  State  banks  are  conducted  as  they 
were  before  the  creation  of  the  National  banking  system.  There  is  very  little  difference 
between  the  internal  workings  of  a  National  and  a  State  liank.  The  main  function  of  receiv- 
ing deposits  and  of  loaning  them  is  performed  in  essentially  the  same  way  by  all  banks. 

It  is  claimed  that  State  banks  possess  some  advantages  over  National  banks  among  which 
are  the  following:  They  are  not  examined  so  critically;  in  some  cases  arc  not  required  to 
make  returns  to  State  officials,  and  in  no  case  are  such  full  returns  required  as  the  National 
law  requires  to  be  made.  They  can  certify  checks  in  excess  of  the  amount  which  the  de- 
positor may  have  at  the  time  of  certifying.  The  National  banks  are  expressly  forbidden  to 
do  this. 

Private  Banks. — A  private  bank  is  a  bank  organized  and  operated  by  a  private  individ- 
ual or  by  a  firm. 

In  opening  a  bank  by  an  individual  no  formality  is  required,  unless  restricted  by  statute; 
nor  in  opening  one  by  a  partnership,  further  than  is  necessary  in  any  partnership  formed 
for  business  i)ur250ses;  simply  a  partnership  contract,  signed  by  the  partners,  setting  fortii 
the  nature  of  the  business  to  be  transacted,  the  amount  of  capital  each  partner  is  to  furnish, 
the  duties  of  each  partner,  the  duration  of  the  partnership,  and  such  restrictions  upon  the 
acts  of  the  officers  as  it  is  thought  wise  to  impose. 

The  Board  of  Directors  meet  at  certain  specified  times  to  consider  tlie  character  of 
the  paper  offered  for  discount  and  referred  to  them  by  the  president  or  cashier,  and  to  con- 
sult as  to  general  business.  In  some  banks  the  Board  delegates  its  authority,  in  the  matter 
of  passing  upon  paper  offered  for  discount,  to  the  president  or  cashier  during  the  intervals 
when  the  Board  is  not  in  session.  This  exercise  of  authority  by  the  president  or  cashier  is, 
however,  subject  to  the  apjiroval  of  the  Board. 

Oilicers  of  a  Bank. — The  officers  and  clerks  of  a  bank  are,  usually,  a  President,  Vice- 
President,  Cashier,  Receiving  Teller,  Paying  Teller,  General  Bookkeeper,  Individual  Book- 
keeper, Note  Clerk,  Messenger,  and  Porter,  together  with  the  necessary  assistants  in  the 
different  departments. 

The  President  is  the  chief  executive  officer  of  the  bank  and  presides  at  the  meetings 
of  the  Board  of  Directors,  and  generally  exercises  the  authority  of  the  Board  during  its 
recess.  Some  banks  have  a  Vice-President  who  assumes  tlie  functions  of  the  President 
during  his  absence. 


196 


OFFICE    ROUTIXK    ANO    liOOKKEEPING. 


JOURNAL. 

MONDAY. 


Monroe  County  Nalional.  Clyde,  211" 

Cliiilon  Natiiuml.  fOS'" 

llenrv  ».  Wilson  &  Co.,  Biitavia,  942" 

Hills  bi>counle<l,  2500,  12000,  2540" 

DiscMiii-.i,""-  «■» 

Kxcliange  National,  New  York, 

Deposits, 

Collection  and  Exchange, 


NEW  YORK   DRAFT 

EXCHANGE   NATIONAL  BANK,  NEW  YORK, 

MONDAY. 


COLU  &   EXCH. 

UE.VEUAL. 

50 

211 

93 

1 

00 

80.') 

70 

3) 

912 

17 

t 

92 

1704U 

18 

3 

19 

1' 

(>3 

il 

09 

99G2 

95 

t;5 


19831 

2: 

57 

2-' 

6S 

48»«7 

76 

No. 

|;V    WII.JM    IlKA    VN. 

(  ly  \\  M  \  1    }'l.Ai  f . 

•  |^  WhatPi-ack. 

Face. 

Tot  A  I.. 

3043 

1682 

1143 

877 

229 

Balance, 
First  National, 
Traders  National, 
Third  National, 
Exihanpe  Bank, 
Miners  Bank, 

Fort  Scoti, 
Oakland, 
liaiicroft, 
-Ml.  Morris, 
CoalburgL, 

Park  Bank, 
Ninth  National, 
Metropolitan, 
Bowery, 
Exchange, 

14.')0 

1942 

2:« 

116 

380 

00 
16 
91 
27 
34 

74751 
4129 

27 
68 

7S88<» 

95 

1 

The  Casllier,  unless  tliere  be  a  Vice-President,  ranks  ne.xt  to  tlie  President,  and  has 
certain  spccilied  duties  to  perform.  lie  is  apijointed  by  the  Board  of  Directors  and  is  re- 
quired to  furnish  a  bond  for  the  faithful  performance  of  liis  duties.  He  keeps  a  record  of 
the  meetings  of  the  Board  of  Directors,  for  whom  he  is  the  acting  secrctaiy.  The  certifi- 
cates of  stock  issued  to  shareholders  are  sijjned  by  him  as  well  as  by  the  President,  as  also 
are  the  notes  which  circulate  as  money.  Drafts  drawn  on  other  banks  are  usually  signed  by 
him,  and  he  indorses  personally  or  by  deputy  all  drafts  and  notes  sent  away  to  other  banks 
for  collection.  All  notes  and  drafts  received  from  other  banks  for  collection  are  endorsed 
over  to  him.  He  is  the  manager  of  the  internal  workings  of  the  bank,  and  has  sujiervision 
of  the  clerical  force.  He  is  expected  to  have  an  intimate  knowledge  of  the  system  of  book- 
keeping ])racticed  by  his  bank,  and  to  see  that  the  work  in  the  various  departments  is  jirop- 
erly  ))erfornied. 

The  Tellers.— The  Paying  Teller  jiaysoutall  moneys,  issues  certificates  of  deposit,  cer- 
tifies all  checks  that  are  to  be  certilied,  and  has  charge  of  that  i)art  of  the  vault  containing 
the  working  cash  of  the  bank.  He  must  be  acquainted  with  the  signature  of  each  depositor 
and  his  daily  balance,  and  be  rapid  and  accurate  in  the  handling  of  money.  He  is  required 
to  give  bonds  for  the  faithful  discharge  of  his  duties.  The  Receiving  Teller  receives  all  the 
money  coining  into  the  bank,  makes  the  record  therefor,  and  at  night  turns  over  all  money 
received  during  the  day  to  the  Paying  Teller.  He  too  must  be  rapid  and  accurate  in  count- 
ing and  handling  money,  and  be  able  to  detect  counterfeit  money  and  forged  negotiable 
pajier.  Like  the  Paying  Teller  he  is  required  to  give  bonds.  Sometimes  the  two  otlices  are 
combined  in  one. 


OFFICE    ROUTINE    AND    BOOKKEEPING. 

JOURNAL 

DECEMBER   12,   189-. 


197 


Monroe  County  National,  Clyde.  423" ' 

Gkneral. 

423 

34 

Fiirmers  National,  Lincoln,  193^=  1315 

1408 

4a 

Traders  National,  Onlario,  Mr>-' 

34:> 

23 

Third  National.  Brighton,  583" 

583 

75 

Clinton  National,  91 P" 

911 

13 

Exchange  National,  New  York, 

412!< 

68 

Deposits, 

3048:i 

53 

Bills  Discounted, 

37.5(1 

(10 

4203-i 

08 

REGISTER. 

In   Account  with   SECOND   NATIONAL  COLLEGE   BANK, 
DECEMBER   12,    I89-, 


No. 

In  Whose  Favor  Drawn. 

Exchange. 

Face. 

Total. 

1626 
1627 
1628 
1629 
1630 

DruramoDd  Bank,  Pillsford, 
.Jones  Manufacturing  Company, 
,Iohn  Adams. 
Samuel  Wallace, 
C.  W.  Davis, 
Balatice, 

5 

81 
63 
50 
50 

2.-) 

4497 

4.50(1 

397 

4.5(1 

117 

19 

00 
84 
00 
92 

9962 

€S91S 

95 

00 

9 

69 

— 

7S880 

95 

1 

The  Bookkeepers. — The  bookkeepers  in  a  bank  are  known  as  General  bookkeeper 
and  Individual  bookkeeper.  The  General  bookkeeper  has  charge  of  the  General  Ledger, 
which  usually  contains  the  main  accounts  of  the  bank  and  also  accounts  with  other  b;inks. 
The  Individual  bookkeeper  has  charge  of  tlie  Individual  or  Depositors'  Ledger. 

The  duties  of  the  other  clerks  of  a  bank  will  be  stated  in  connection  with  the  explanation 
of  the  books. 

Books  Used. — The  books  used  in  this  bank  are  Journal,  General  Ledger,  Individual 
Ledger,  New  York  Draft  Register,  Discount  Ilegister,  Collection  Register,  Discount  Tickler 
and  Collection  Tickler.  Other  books  such  as  Offering  Book,  Dealers  Discount  Book, 
Dealers  Bill  Book,  Tellers'  Books,  Certified  Check  Book,  Certificate  of  Deposit  Book  and 
Statement  Book  are  also  used  in  banks. 

The  Journal  sustains  the  same  relation  to  the  banking  business  that  a  Main  Cash 
Book  does  to  any  mercantile  business.  On  the  left-hand  side  are  entered  all  cash  receipts  at 
the  commencement  of  business  and  afterwards  are  entered  all  deposits  and  collections  of 
whatever  kind  either  in  detail  or  in  total.  On  the  right-hand  side  are  entered  all  payments 
on  deposit  account,  either  in  detail  or  in  total,  and  the  amount  paid  out  for  notes  discounted 
and  for  the  running  expenses  of  the  bank.  If  balanced  the  difference  between  the  two  sides 
should  show  the  amount  of  cash  in  the  vaults  of  the  bank.  This  balance  usually  consists 
of  National  Bank  notes.  Treasury  Notes,  Silver  Certificates,  Checks  on  other  banks,  the 
notes  issued  by  the  bank,  Specie  and  Cash  Items.  Cash  items  consist  of  memoranda  of  dif- 
ferent kinds  carried  as  cash.     Sometimes  the  Journal  is  balanced  daily  and  the  balance  rep- 


198 


OFFICE    ROUTINE    ANU    liOOKKEEl'ING. 

INDIVIDUAL 


NAME. 

MONDAY 

'       •  \y.  DEC.  13.  1- 

■  1 

DNESOAV.  DEC.  14.  189-. 

1 

;  ChcclK 
llnDctmll 

Toi«i 

^iitKUtl 

M::.: 

'  IaU 

ToUl 
Clic«kK 

[X'po»iu> 

BaIuicv 

Adams.  John. 

1 

loaoi 

85 
38 
99 
M 

(* 

~t 

30 
37 

500 

39; 

4500 

ou 

81 
OO 

1 
167 1 

4500 
M4W 

44 

00 

.^ioo 

1846 

ill  743 
3118 
C9I0 

1«<31 

00 

02 
56 
63 

57 

8730 

41 

:16 
74 

75 
UO 

30 

I4UU 

900 
3463 
1941 

11 J 
825 

3000 

448 
918 

00 

00 
71 

."lU 

00 
00 

35 

30 

1400 
ffiBOi 
1030 

3000 

448 

918 
36111 

OU 
.53 

63 

CO 

35 

30 
09 

die  16 

1500 

ISOO 
d«48 

2ava 

76 
00 

OO 

00 
35 

7330 

41 

83 
82 
75 

00 
41 

1000 
603 

1741 
C22 

31X1 
1074 
loOO 

1500 
1794 

on 

00 
42 

90 

00 
N) 
00 

OO 
60 

4103 
2364 
2874 

1500 
1^4 

23377 

42 

06 
83 

00 
CO 

■a 

IITl 

4325 

1500 

1000 

1(1794 

25742 

55 

UO 
00 
00 
60 

99 

MOI 

96 

Drown.  H.  J. 

8S465 

3596.1 

28659 

2i55<) 

41 

Davis,  C.  W. 

681!) 

84«a 

10652 

8188 

74 

Jones  .Mfg.  Co. 

16044 

1T316 

1*576 

21096 

9i 

• 
Certlflcatcs  of  Deposit, 

soou 

3O0O 

1500 

UD 

Certified  Checks, 

l.<«0 

1000 

09 

Cashier  AceouDt, 

THANSItNT  ACCOCNTS. 

LouK.  II.  S. 

ni8 

918 

232206 

221.154 

205996 

20H362 

17 

= 

= 

~~ 

^ 

•  Several  accouiit-s  nic  lure  omitted.  Init  tlio  footfiitri*  of  the  ooluinne  include  (lie  n^sults  of  the  aceouuts  as  well 
as  those  illustrated. 

resents  the  cash  on  liaiul,  and  ihe  .Journal  a.-;  a  wliole  represents  the  cash  account.  Usually, 
however,  a  Cash  account  is  opened  in  the  General  Ledger  and  the  footings  of  the  Journal 
are  posted  daily,  but  tlie  Journal  in  such  a  case  is  never  balanced.  But  whelher  this  bal- 
ance is  made  in  tlie  Journal  or  in  the  Casli  Book  the  jiroof  of  the  balance  found  is  made  in 
a  book  called  a  "Blotter,"  "Cash  Proof"  or  "  Casli  Balance."  It  is  compiled  as  follows: 
On  the  right-hand  side  of  a  perpendicular  line  running  through  the  center  of  a  blank  jiage 
is  set  down  the  balance  on  liand  tlie  day  i)revious.  To  this  is  added  the  footing  of  tlie  left- 
hand  or  debit  side  of  the  Journal,  and  from  the  amount  thus  obtained  is  subtracted  the 
footing  of  the  riglit-liand  or  credit  side;  the  balance  should  be  the  amount  on  hand.  On 
the  left-hand  side  of  said  perpendicular  line  and  opposite  the  work  already  compiled  is  made 
a  memorandum  exhibiting  tlie  following:  The  total  amount  of  bills  on  hand,  the  amount  of 
specie  on  hand,  the  amount  of  cash  items  and  the  amount  of  checks  and  drafts  ou  hand 
and  treated  as  casli.     The  aggregate  sum  should  equal  the  sum  of  the  other  side. 

The  entries  in  the  Journal  are  made  up  aliiKJst  wholly  of  totals  compiled  from  other 
books.  The  left-hand  side  has  two  money  columns  devoted  to  "Collection  and  Exchange" 
and  "  Gcncrar'  resiiectively.  Tlic  Collection  and  Exchange  column  contains  all  the  items 
to  be  credited  to  Collection  and  Exchange  account,  and  at  the  end  of  the  day  this  column  is 
footed  and  posted  direct  to  this  account  in  the  General  Ledger.     In  the  General  column  are 


OFFICE    ROUTINE    AND     HOOKKEEl'ING. 


199 


LEDGER. 


THUKSDAY.  DEC.  15.  JS>-. 

FRIDAY,  DEC.  16,189-. 

SATUKDAY,  DEC.  17,  189-. 

Checks 
in  Detail. 

Total 
Checks. 

Deposits. 

balance. 

Checks 
in  DctaU. 

Total 
Checks. 

Deposits. 

Balance. 

Checks 
in  Detail. 

Total 
Checks. 

Deposits. 

Balance. 

NA.ME. 

211 

63 

12.W 

61 

84 
00 

00 

88 
00 

00 

w 

00 

1535 

« 

00 
88 
40 

87 

00 
00 
00 

_ 

44 

6970 

51 
41 

86 
52 
00 
00 

74 

00 
(10 
71 
00 

CO 
IS 
35 

37 

71 

53 

37 
24 

55 

on 

72 
OO 

37 
42 

6976 

51 
25 
86 
71 

00 
00 

92 

00 

35 
62 

50 
00 
17 

00 
97 
67 

m 

50 
71 

38 

84 
11 

97 

6976 

51 
46 
27 
99 
00 
00 

41 

Adams,  John. 

675 

675 

2i50 

27131 

365 

2000 

183 

675 

3223 

2187 

26095 

1500 

1500 

113243 
651 

dl841 

23490 

Brown,  H.J. 

12.56 
5000 

<i356 

575 

2.506 

4000 

6506 

69 
476 

545 

7802 

Davla.  C.  W. 

17.5 

(<6 

luoo 

1361 

1900 

21665 

1500 
794 
162 

S456 

d2452 
3500 

2.5161 

118 
500 
1896 

2514 

d4790 
4942 

32379 

Jones  Mfg.  Co. 

1500 

15(10 

1600 

Certtacates  of  Deposit. 

1000 

1000 

1000 

Ceniaed  Checks. 

748 

748 

11748 

Cashier  Account. 

Transient  Accounts. 
Long,  H.  S. 

20502 

219.13 

209792 

13888 

243li5 

2211269 

11756 

27292 

235808 

-' 

iOvdilrafts  in  red  itlk.i 

entered  the  credits  to  Bills  Discounted,  Deposits  uccount  and  Chemiciil  Bank  of  New  York. 
The  total  for  credit  to  Bills  Discounted  is  entered  here  from  the  total  amount  collected 
during  the  day  on  paper  owned  by  the  bank,  as  shown  by  tlie  Discount  Tickler.  The  total 
credited  to  the  Chemical  Bank  is  the  footing  of  the  New  York  Draft  Register,  wliich  repre- 
sents the  aggregate  amount  of  drafts  drawn  on  the  Chemical  Bank  by  us  during  the  day  and 
the  total  credit  to  Deposits  account  is  from  the  total  footing  of  the  Deposits  column  in  the 
Individual  Ledger.  Receipts  from  other  Banks  and  from  other  sources  are  also  entered  in 
the  General  column.  On  the  riglit-hand  side  of  the  Journal  are  entered  the  debits  to  De- 
posits account,  the  Chemical  Bank  of  New  York,  accounts  with  other  Banks  and  such  other 
accounts  as  Collection  and  Excliange,  Expense,  etc.  Tlie  entry  to  Dej)o.sits  account  is  com- 
piled from  the  Total  Check  column  of  the  Individual  Ledger;  the  total  to  Chemical  Bank 
from  the  New  York  Draft  Register,  wliich  total  rejircsents  the  remittances  for  the  d;iy  to  the 
Chemical  Bank;  charges  to  the  Expense  account  are  eitlior  com[iiIed  from  tlie  vouchers  in 
the  cash  drawer  at  night  or  from  the  Expense  Book. 

When  the  business  is  of  such  magnitude  as  to  necessitate  the  employment  of  two  clerks 
upon  the  Journal,  or  where  two  tellers  are  employed  in  a  bank,  the  Journal  is  divided  into 
two  books.  The  right-hand  side  of  the  general  Journal  would  be  bound  into  one  book  and 
called  the  Debit  Journal  and  the  left-hand  side  would  be  bound  into  a  separate  book  and 
called  the  Credit  Journal.  Sometimes  the  Credit  Journal  is  called  the  Debit  Cash  Book 
and  the  Debit  Journal  the  Credit  Cash  Book. 


200 


OKKICE    ROUTINE    AND    BOOKKEEPING. 

DISCOUNT 


Wren  Dis. 

No. 

M  VKEIl. 

Harwood  tiros- 

Enuukskk. 

Page 
OF  U.U. 

W 11  EKE  Payable. 

Date. 

1' 

w.  F.  Johueon. 

13 

Cnion  Bank. 

1  '■■•  . 

r." 

I>50 

Ham  Sc  Kiiiir. 

1 

Jones  Mf|f.  (*o.. 

i: 

West's  IJalik,  T.ivonia. 

11 

Dec. 

i:t 

5.17 

I,.  W.Gniy. 

J.  H.  Woodward, 

19 

Second  Nat.,  Lyons, 

Dec. 

i» 

.VvS 

I'ayiif  &  Harris. 

(;.  W.  Uuvis, 

20 

Union  Itank, 

.Wft 

Huiiry  L.  Kuwler. 

H.  Sibley, 

1 

15 

Our  Hank, 

2 

COLLECTION 


Win  N  1,1 

)  r. 

No. 

I'A^  Kit. 

ENDOItSJ.H. 

w  in. HI   1'  \  vabi^e. 

To  Whom  Sent. 

Dec. 

12 

nin 

Samuel  Wallace, 

J.  F,.  Hill, 

Our  Bank, 

B:.'0 

Union  Bank, 

D.  U.  Jones, 

Our  llauk. 

921 

C.  W.  Davis, 

Jas.  Ilraekett, 

Our  Bank, 

'.•22 

Our  Biuik, 

Klein  &  Co., 

Our  Bank, 

112:) 

J.  W.  M<ad, 

Jones  Mf^r.  Co., 

Lvons, 

Monroe  Co.  Nafl. 

924 

W.  G.  Shaver, 

D.  J.  Sloeunl, 

(;^nton. 

Farmers.  Caruon. 

925 

P.  A.  Wood, 

J.  II.  Woodward  &  Co., 

Kinirston, 

Tra.  Nat'l.  Kiii»fStoiu 

828 

First  Nal'l,  Newport, 

CiL<e  &  Weaver, 

Newport, 

;ird  Xari.  Nrwport. 

92T 

.).  L.  Wliite. 

H.  L.  .Mason, 

2nd  Nafl,  Hockford, 

1st  Nafl,  Hockford. 

928 

D.J.  Dudley, 

Micliael  Kauffman, 

Batb, 

The  (ieneral  Ledger  contains  all  the  accounts  of  the  business  excepting  those  with 
depositors,  Cci-tilicatcs  of  Deposit  and  Certified  Ciiecks.  Deposits  account  in  tlie  General 
Ledger  rejiroscnts  the  total  of  all  the  accounts  in  the  Individual  Ledger. 

The  liidividiiiil  Ledger  is  a  book  of  original  entry  for  all  casli  transactions  with 
depositors,  and  in  using  it  much  labor  is  saved  and  errors  are  less  likely  to  occur.  It  is 
made  with  a  very  large  i)age  —  1S.\^3  inches  not  being  an  unusual  size  —  large  enougii  to 
contain  the  accounts  of  forty  or  more  depositors  on  a  page.  The  left-hand  page  is  ruled 
with  a  foluuin  for  the  names  of  the  depositors,  and  one  for  the  balances  of  the  depositors" 
account.^.  'I'iie  remainder  of  the  Jiagc  is  divided  into  tliree  sets  of  money  columns,  each 
containing  four  columns.  The  first  or  left-hand  column  in  each  set  is  devoted  to  "Checks 
in  Detail,"  tiie  second  to  " 'J'otal  Cheeks,"  the  third  to  "Deposits"  and  the  fourth  to 
"  Balances."  The  right-hand  side  of  the  page  is  the  same  as  the  left-hand  j)agc,  except 
that  the  column  for  the  dejjositors'  names  is  on  the  extreme  right.  Sometimes  these  names 
are  jiriuted  in  wliere  the  book  is  made,  especially  where  a  bank  has  a  certain  line  of  regular 
dejiositors.  Li  tliat  case  a  few  blank  lines  are  left  after  each  letter,  the  nanus  being  arranged 
alphabetically,  for  the  names  of  new  dejjositors.  The  name  of  each  depositor  is  written  on 
each  page  and  the  line  ui)on  which  his  name  appears  represents  his  account  for  a  ])eriod  of 
one  week.  At  the  beginning  of  each  week,  unless  tiie  names  are  jirinted,  the  names  are 
rewritten  and  tiie  balances  carried  forward.  In  some  banks,  however,  tiie  leaves  followins 
the  first  record  of  names  are  cut  some  two  inches  narrower,  so  that  wiien  a  leaf  on  the  right 
is  turned  over  on  to  tlie  left-hand  page  the  names  are  not  covered,  and  tiie  record  may  be 
continued  without  rewriting  tiie  names,  exeej)!  upon  tlie  first  of  eacli  montii  or  (puirter. 
(See  form  of  Individual  Ledger,  pages  198,  199.) 


OFFICE    ROUTINE    AND    BOOKKEEPING. 

REGISTER 


Time. 

When  Due. 

15  da. 
10  da. 

Dec. 

30 

24 

15  da. 
15  da. 
30  da. 

Dec. 
Jan. 

31 

2.-> 

4 

Face 
OP  Paper. 


2000 
1750 


500 
1020 
450 


00 


Discount. 


6 
3 

00 

79 

('       9 

79 

Coll.  &  Ex. 


3 

19 

V      3 

19_ 

13 


Proceeds. 

Tickler 
Chock. 

V 

V 

\/ 

1994 
1743 

00 
02 

37.17 

03 

497 
I61S 
448 

37 
76 
35 

2.W2 

43 

For  Whom 
Discounted. 


W.  F.  Johnson. 
Jones  Mfg.  Co. 


J.  H.  Woodward. 
O.  W.  Davis. 
Henry  L.  Fowler. 


Ohauk. 


201 


Rem'ks. 


Cash. 


REGISTER 


Date. 

TlJIE. 

For  Whom  Collected. 

Face. 

CHECK. 

Remarks. 

T.orCr 

laid 

Dee. 

13 

Sight, 

Monroe  Co.  National  Dank, 

211 

93 

|/ 

,, 

Credited. 

" 

9 

Sight, 

Clinton  National  Bank, 

805 
Int. 

70 

\! 

y' 

Credited. 

Nov. 

13 

30  da. 

Dec. 

10 

Farmers,  Canton, 

13-il) 

00 

]/ 

Dec. 

9 

Sighf, 

Drmnmonds  Bank,  Pittsford, 

4500 

(lU 

Remitted  N.Y.dra 

ft. 

** 

13 

Sight, 

Oui-selves, 

423 

3t 

V 

V 

*• 

13 

Sight, 

1>.  J.  Slocnm, 

193 

43 

Returned. 

** 

13 

Siii-ht, 

J.  H.Woodward, 

315 

3:j 

V 

V 

Credited. 

•* 

10 

Sight, 

Case  &  Weaver, 

683 

75 

V 

V 

Credited. 

Oct. 

14 

2  mo. 

Dec. 

17 

U.  L.  Mason, 

2S5 

(10 

Dec. 

\:i 

Sight, 

M.  Kauffman, 

333 

16 

'' 

r 

Credited. 

At  tlio  close  of  banking  liours  cacli  day,  every  customer's  deposit  for  the  day  is  added  to 
his  balance  of  the  day  previous,  and  from  this  sum  the  aggregate  of  his  checks  is  deducted, 
and  the  new  balance  is  extended  into  the  "  Balance"  column.  Each  column  is  then  footed, 
excepting  that  devoted  to'  "  Checks  in  Detail,"  and  in  case  there  are  more  than  one  page  of 
accounts,  the  footings  are  carried  forward  so  that  the  final  footings  shall  exhibit  the  total 
amount  of  checks  paid  and  the  total  amount  of  deposits  for  tlie  day,  as  well  as  the  aggregate 
of  balances  of  depositors'  accounts.  The  footing  of  the  column  of  "Total  Checks"  is  carried 
to  the  debit  of  Deposits  on  the  riglit-hand  side  of  the  .Journal,  and  the  footing  of  the 
column  of  "  Deposits,"  to  the  credit  of  Deposits  on  the  left-hand  side  of  the  Journal. 

The  advantages  of  this  form  of  Lodger  are:  first,  the  paying  teller  can  more  readily 
ascertain  the  condition  of  a  depositor's  account;  second,  the  necessity  for  writing  all  the 
names  on  both  sides  of  the  Journel  every  day  is  obviated;  and,  third,  tiie  bookkeeper  has 
forty  or  more  accounts  before  him  at  once,  instead  of  being  required  to  consume  a  large  part 
of  the  time  turning  from  one  account  to  another. 

The  New  York  Draft  Register. — In  this  book  is  kept,  in  detail,  the  account  between 
the  bank  and  its  New  York  correspondent.  On  the  left-hand  page  are  entered  all  remit- 
tances to  the  Chemical  National  Bank  for  its  credit,  with  the  number  of  the  draft  or  check, 
the  bank  or  person  by  whom  drawn,  the  bank  or  person  on  whom  drawn,  and  the  amount. 
On  the  right-hand  page  are  recorded  all  drafts  drawn  by  the  bank  on  tlie  Chemical  National 
Bank,  with  the  number,  the  name  of  the  person,  bank  or  firm  in  wliose  favor  made,  the 
amount  of  Collection  and  Exchange  and  the  face  of  each  draft.  {See  New  York  Draft 
Register,  page  196.)  This  book  is  balanced  every  day  and  the  balance  brought  down,  and 
while  an  account  is  kept  in  the  General  Ledger  with  Chemical  Bank,  simply  to  show  in  the 


202 


OFFICE    ROUTINE    AND     BOOKKEEPING. 

DISCOUNT  TICKLER. 

DECEMBER   12,    189- 


No.  1         .Patkk. 

EM>UltSKK. 

Where  Fa VABI.E.          To  Wbum  Se.NT. 

Amucat. 

Ck. 

Remabcs. 

SnO     W.  F.  Johnson, 
SDl     iiobert  Vuuitlm, 

Jaino*  Hrackett. 
Lord  Jc  llarrett. 

Our  Bank, 
Lnion,  City, 

12000 
2bW 

00 
18 

» 

p.  i-  E. 

13 

5(B     H.  w.  Gloess, 
90      I..  W.  Darts. 

1 

Wm.  Kayniond, 
Thos.  H.  WiUon, 

Brown  &  Co.,Can-    Farmers.  Lincoln.            1 

ton. 
Exchange,  City, 

785 

son 

1 

00 
00 

1 

P.«E.9tb. 

COLLECTION  TICKLER. 

DECEMBER   12,   189-. 


No. 

Paver. 

WherePayable.!  To  Whom  Sent. 

For  Whom  Coix^cted. 

AMOUNT. 

CK. 

»' 

Remarks. 

833 

sa 

833 

Arthur  Rannej-, 
Jaoot)  Hoekstra. 
A.  -M.  HastiUKS, 

'  Lincoln,                    Farmers  Bank, 
E.xchanire.  City, 
Yonkers,                   E.icchanjft'. 

i 

L.  J.  Fiirnhain. 
S.  H.  Lowe. 
W.  F.  .lohnson. 

1213 
918 
8S6 

00 

ao 

82 

Retumcl. 

872 

888 


Cha-s.  F.  Ham,         Clyde. 
Harvey  Brown,       Union,  City, 
James  Angle,  Our  Bank, 


Monroe  Co., 


Stillman  &  Mrxjre. 
Henry  D.  Wilson  4  Co.. 
Traders  National, 


318 
9tS 
IMO 


»ll 
li  I 
00 


P.  iE. 
Protest*^!. 


quarterly  statement  all  tlie  resources  and  liabilities  of  the  bank,  yet  this  book  represents 
the  current  condition  of  the  account  with  Chemical  Bank  and  is  the  account  consulted 
when  information  is  wanted  regarding  tlie  business  with  the  bank.  The  aggregate  of  the 
remittances  to  Chemical  National  Bank  for  tlie  day  is  charged  to  that  bank  on  the  right- 
hand  side  of  the  Journal,  and  the  aggregate  of  the  drafts  made  on  Chemical  National  Bank 
during  the  day  is  credited  to  that  bank,  on  the  left-hand  side  of  the  Journal.  The  footing 
of  Collection  and  Exchange  column  in  this  book  is  credited  to  Collection  and  E.xcbange 
account  on  the  left-hand  side  of  the  Journal.  If  it  is  deemed  desirable  this  book  may  be 
divided  into  two  books  as  in  the  case  of  the  Journal,  one  devoted  to  remittances  made  to 
our  correspondent  in  New  York  City  (or  other  commercial  center)  and  the  other  to  the" 
drafts  drawn  by  us  upon  such  correspondents. 

Discount  Register. — This  book  is  a  book  of  original  entry  and  becomes  the  basis  for 
all  transactions  involving  Bills  Discounted.  It  contains  a  complete  record  of  all  paj)er 
discounted  by  the  bank,  which  record  is  made  at  the  time  the  paper  is  discounted.  The 
Amount,  Discount,  Collection,  and  E.xchange,  and  Proceeds  columns  are  footed  each  day 
and  ruled  as  illustrated,     {See  Discount  Register,  pages  200,  201.) 


OFFICE    ROUTINE    AND    BOOKKhhj  JM^. 


208 


DEALERS  BILL  BOOK. 

JONES  MANUFACTURING   COMPANY. 


■WHEK 
UISOOCKZED. 

KO. 

OTHEK  PARTIES  LJABLK. 

Hum  ^  Kiu^. 

UISCOCBTEll 
FUB  HJ.M. 

UASUC  AS 

£K1>UKS£11.. 

WHEN  KUE. 

{     K£MAKKS. 

K 

1750 

1 
00 

''      1 

JTSO     00 

-  .     II 

1 

1            1 

1 

HENRY   L   FOWLER. 


Ita^.        IS  !V»p  I  H.  KbJeT. 


iJj 

00 

490 

00 

1 

■         II 

4          1 

1 

The  footing  of  the  Total  eoliunn  represents  the  total  amount  of  paper,  at  its  face  value, 
bought  during  the  daj;  the  Proceeds  eolumu  represents  the  total  cost,  and  the  difference 
betveen  the  two  amonnte  represents  the  amount  charged  by  the  bank  for  discount,  collec- 
tion, and  exchange,  -whieh  amount  is  shown  by  the  footings  of  the  Collection  and  Exchange 
and  Diseouiit  columns.  The  footing  of  the  "  Amount "  column  is  charged  to  Bills  Dis- 
counted on  the  right-hand  (or  paying  out)  side  of  the  Journal  and  cheeked  in  the  Discount 
Eegister.  On  the  left-hand  (or  receiring)  side  of  the  Journal,  Discount,  Collection  and 
Exchange  are  credited  for  the  footings  of  the  Collection  and  Exchange  columns.  The  items 
in  the  Proceeds  column  in  the  Discount  Eegister  are  posted  in  the  Deposits  column  of  the 
Indiridual  Ledger  and  then  carried  to  the  left-hand  side  of  the  Journal,  together  with  other 
deposits,  in  one  total  Excepting  where  paper  is  discounted  for  cash,  each  party  whose 
najne  appears  in  the  "For  Whom  Discounted"  column  is  credited  in  the  "Deposits"  col- 
umn of  the  Individual  Ledger  for  the  proceeds  of  the  paper  discounted  {see  ezplanaiion  of 
Individual  Ledger,  page  200)  as  shown  by  the  amount  in  the  "Proceeds'"  column  of  the 
Discount  Eegister.  The  amount  when  so  transferred  is  checked,  using  as  a  check  either  the 
page  in  the  Individual  Ledger  on  which  the  depositors's  name  is  entered  or  the  numerical 
system,  which  consists  in  giving  each  depositor  a  number  from  one  to  the  total  number  of 
depositors  and  entering  the  depositors  number  as  a  check  mark. 

For  paper  discounted  for  cash,  a  Cashiers  cheek  is  given  by  the  Discount  clerk  to  the 
party  selling  the  paper.  This  check  is  cashed  by  the  Teller  and  entered  to  the  debit  of 
Cashiers  account  in  the  ''Checks  in  Detail"  column  of  the  Individual  Ledger.  For  tbese 
cash  puTchases  the  word  Cash  is  entered  after  the  parties'  names  and  the  items  are  credited 
to  Cashier's  account  in  the  Individual  Ledger. 

The  entries  in  the  Discount  Eegister  are  numbered  consecutively.  All  paper  is  carefully 
classified  with  reference  to  its  maturity  so  that  it  may  be  protected  by  protest  if  not  paid. 
This  is  done  by  recording  each  paper  by  number,  name,  amount  and  when  legally  due  in 
the  Discount  Tickler  under  the  date  of  maturity.  When  so  transferred  a  check  mai-k  is 
made  in  the  Discount  Eegister  in  the  column  headed  "Tickler  Ck."  In  case  the  paper  is 
dishonored  and  protested  the  word  "Protested"  is  written  opposite  the  record  of  it  in  the 
"  Eemarks  "  column  of  the  Discount  Tickler,  and  such  other  }»articnlars  regardiag  the  mat- 
to-  as  may  be  important. 


204  OFI-ICE    ROUTINE    AND    bOOKKEEl'ING. 

Discount  Tickler. — As  cxpluiiied  iibove,  in  tliis  book  are  entered  all  the  discounted 
notes  or  bills,  urr:iny;ed  with  reference  to  their  maturity.  The  sphere  of  the  Discount 
Tickler  is  to  insure  the  presentation  of  i)aper  for  payment  at  the  proper  time. 

The  Dciilcrs  Hill  ISook,  sometimes  called  "Individual  Liabilities,"  is  designed  to 
show  in  convenient  form  the  amount  of  discounted  paper  carried  b)'  the  bank  for  each 
customer.  A  title  page  is  given  to  each  dealer  and  the  record  is  compiled  from  the  Dis- 
count Register.  The  book  is  divided  into  columns  as  follows:  Commencing  on  the  left 
there  are  consecutively  given  the  "Date  Discounted,"  "  Number "  (which  is  the  consecu- 
tive number  in  the  Discount  Register),  "Other  Parties  Liable,"  "Liable  as  Endorser," 
"  Liable  as  Payer,"  "  When  Due,"  and  "Remarks."  Sometimes  the  dealer's  name  is  the 
one  written  at  the  head  of  the  page,  but  the  rule  is  to  write  the  name  on  the  strength  of 
which  tlie  paper  was  bought.  The  book  is  indexed  so  that  ready  reference  may  be  had  and 
the  amount  on  hanil,  if  any,  ni.-iy  be  ascertained.  Some  banks  observe  a  very  strict  record 
regarding  the  customers  from  whom  they  buy  paper.  A  record  is  compiled  not  only  like 
the  above  for  each  dealer,  but  a  page  is  set  apart  u\)<m  wliicli  are  posted  the  mercantile 
reports,  synopsis  of  letters  jiertaining  to  the  character  of  the  house,  opinions  of  business 
men  regarding  the  dealer's  standing,  etc.  This  record  is  carefully  compiled  from  day  to  day. 
As  fast  as  jwper  is  paid  it  is  marked  "  Paid"  in  the  Remarks  column. 

Collection  H('!;ister. — This  book  is  designed  to  contain  a  record  of  all  paper  left  at 
the  banl<  for  collection,  that  which  is  received  from  abroad  for  collection,  and  of  all  sight 
paper,  j)ayable  abroad,  received  as  cash.  {See  Collection  Register,  page  200.)  Being  the 
book  of  original  entry  for  such  paper,  the  j)apcr  is  recorded  by  consecutive  numbers.  The 
record  of  tlie  time  paper  is  then  transferred  to  the  Collection  Tickler,  and  when  so  entered 
a  check  mark  is  made  in  the  column  headed  "Tickler  and  Cr.  Check"  of  the  Collection 
Register.  All  sight  pajier  received  from  abroad  is  at  once  presented  for  payment,  and  if 
paid  it  is  checked  in  the  "  Paid"  column  of  the  Collection  Register.  Paper  received  from 
a  regular  correspondent,  if  paid,  is  credited  to  such  bank  in  the  Journal  and  checked  in  the 
column  headed  "Tickler  and  Cr.  Check"  of  the  Collection  Register.  The  i)roceeds  of  all 
l)aper  received  from  other  than  regular  correspondents  are  remitted  in  draft  on  Chemical 
National  Bank,  and  when  so  remitted  a  memorandum  to  that  effect  is  made  in  the  "Re- 
marks" column  of  the  Collection  Register  and  the  draft  is  entered  in  the  New  York  Draft 
Register. 

All  checks  and  sight  drafts  payable  abroad,  received  as  cash,  are  entered  in  this  book 
and  charged  in  the  Journal  to  the  accounts  of  the  banks  to  which  they  are  sent  for  collec- 
tion. When  so  charged  they  are  checked  in  the  "  T.  and  Cr.  Check"  column.  All  pajicr 
payable  abroad,  received  as  cash,  is  charged  immediately  to  the  banks  where  sent  for 
collection. 

The  Collection  Tickler  contains  a  record  of  all  time  paper  left  with  the  bank  for  col- 
lection, and  is  compiled  from  the  Collection  Register.  Like  the  Discount  Tickler  all 
transfers  to  the  Collection  Tickler  arc  arranged  according  to  the  date  of  the  maturity  of  the 
paper.  At  the  beginning  of  the  year  a  new  book  is  gotten  up  with  jirinted  headings  for 
every  week-day  of  the  year;  as,  "Monday,  Jan.  2nd,  18'J9,"  etc.,  one  half  of  a  double 
])age  usually  being  given  to  each  day  of  the  week  from  Monday  to  Saturday.  On  each  page 
are  ruled  columns  headed  "  For  Whose  Acct.,"  "Payer,"  "When  Payable,"  and  "To 
Whom  Sent."  A  record  so  kept  enables  the  bank  to  demand  payment  promptly  on  tho 
date  of  maturity,  and  if  not  jiaid  to  protest  same  and  notify  the  endorsers  as  provided  by 


OFFICE    ROUTINK    AND    BOOKKEEPING.  205 

law.  The  Collection  and  Discount  ticklers  are  consulted  at  the  beginning  of  each  day's 
business,  when  it  can  be  seen  just  what  paper  demands  attention.  All  collections  are  sent 
to  tlie  bank  where  made  payable  or  to  the  correspondents  of  the  bank,  except  in  cases  where 
a  long  time  is  to  elapse  before  maturity.  But  even  in  case  of  longtime  paper  such  collec- 
tions should  be  sent  several  days  before  maturity  tliat  due  notice  may  be  sent  the  payer  by 
the  bank  where  ])ayment  is  to  be  made. 

Stock  Ledger. — This  book  contains  an  account  witli  each  stockliolder,  in  which  he  is 
credited  for  all  stock  paid  for,  and  debited  with  all  stock  transferred  to  other  parties.  This 
book  is  kept  by  the  Secretary  or  Cashier  and   therefore  is  not  used  here  in  the  memoranda. 

Collection  Paper  is  ])aper  received  by  a  bank  for  collection  on  account  of  its  depositors, 
correspondents  and  others.  Such  paper  does  not  become  the  property  of  the  bank  as  the 
bank  acts  only  as  agent  for  the  owners,  charging  a  fee  for  its  services,  called  "  Collection.'' 
Tlie  making  of  collections  is  an  important  part  of  the  banking  business,  and  the  one  which 
illustrates  forcibly  the  utility  of  banks.  Paper  for  collection  must  be  drawn  or  endorsed  so 
that  the  bank  can  make  the  collection. 

When  paper  is  received  for  collection,  the  bank  clerk  marks  on  each  note  or  time  draft 
the  date  of  its  maturity.     This  is  called  "  timing." 

All  paper  received  for  collection,  wherever  jiayable  and  of  whatever  kind,  is  entered  in 
the  Collection  Register.  If  it  is  time  paper  it  is  also  entered  in  the  Collection  Tickler  and 
checked  in  the  Tickler  Check  column  in  the  Collection  Register  to  show  that  it  has  been 
entered  in  the  Tickler.  Every  entry  is  numbered  in  the  Collection  Register  and  the  Col- 
lection Register  number  is  written  on  the  paper  itself,  usually  in  red  ink. 

Pajier  from  abroad  received  for  collection,  if  payable  at  sight,  is  collected  and  checked  in 
the  "  Paid  "  column  in  the  Collection  Register,  and  credited  in  the  Journal  to  the  bank 
from  whom  it  was  received,  and  again  checked  in  the  Tickler  check  column  to  show  that  it 
had  been  so  credited.  The  "Tickler  Check"  column  thus  serves  the  double  purpose  of 
checking  sight  paper  when  credited  and  time  pajier  when  entered  in  the  Tickler. 

After  paper  received  for  collection,  payable  abroad,  has  been  entered  in  the  Collection 
Register,  if  time  paper,  it  is  also  entered  in  the  Collection  Tickler  and  checked  in  the 
Tickler  Check  column,  and  sent  to  tlie  place  where  it  is  i)ayable,  for  collection. 

There  is  no  uniform  rate  of  charges  for  collecting  paper,  the  amount  charged  being 
largely  governed  by  circumstances;  that  i.s,  the  place  where  payable,  the  amount  of  the 
paper  and  the  business  relations  with  the  customer. 

No  charge  is  made  for  collecting  paper  i)ayable  in  the  city  received  from  banks  which 
are  regular  correspondents,  nor  do  such  banks  make  a  charge  in  similar  cases.  The  accom- 
modation is  reciprocal.  The  bank  that  received  the  paper  for  collection  usually  makes  a 
charge  to  the  party  for  whom  the  collection  was  made,  whether  or  not  a  charge  was  made  to 
the  bank  for  collecting  the  paper.  When  a  charge  is  made  by  a  correspondent  of  the  bank 
for  making  a  colleetion  this  charge  is  included  in  the  bank's  charges  to  the  party  for  whom 
the  collection  is  made. 

If  paper  payable  abroad  is  collected  by  a  bank  not  a  regular  correspondent  tlie  proceeds 
are  usually  remitted  by  New  York  draft.  If  the  collection  is  made  by  a  regular  correspond- 
ent the  proceeds  are  credited,  and  a  notice  is  usually  sent  to  that  effect. 

Sight  paper  received  from  abroad,  drawn  on  a  dejtositor,  is  presented  to  the  payee,  who 
pays  it  either  by  giving  a  check  for  the  amount,  or  by  accepting  it  payable  at  the  bank. 
This  is  not  an  "acceptance"  in  the  usual  sense,  but  an  order  on  the  bank  to  pay  the 
amount  specified  in  the  draft. 


2UG  OFt'ICE    KOUT1N1-:    A.N'U    1!UUKKEEP1N(;. 

Discount  Paper  ii)cliuk>s  all  the  paper  discouiited  or  bought  by  the  bank.  Such  paper 
is  called  Hills  Discouiiteil,  wliicli  is  the  same  as  Hills  Receivable.  Unlike  collection  i>aper, 
discounted  jiapor  is  the  jjroperty  of  the  bank,  and  when  it  is  paid  Bills  Discounted  account 
is  credited  for  the  amount  of  such  jiaper.  In  addition  to  the  discount  on  discounted  paper 
payabla  abroad,  charges  are  usually  made  for  collection  and  exchange.  As  the  proceeds  of 
each  note  must  be  collected  and  remitted  to  the  bank  discounting  the  paper,  if  it  is  col- 
lected by  a  bank  not  a  regular  correspondent,  the  cost  of  exchange  will  be  deducted,  in  ad- 
dition to  the  charge  for  collection.  Were  it  not  for  tlie  reciprocal  arrangement  for  mutual 
services,  like  charges  would  be  made  by  the  bank's  correspondents.  Thus  it  will  be  seen 
that  the  charges  for  collection  and  exchange  made  the  party  for  whom  the  paper  is  dis- 
counted, ai'e  for  services  rendered  by  the  bank  or  its  correspondents.  When  discounted 
])a])er  ])ayable  at  tlie  bank  where  it  is  discounted,  falls  due,  it  is  charged  direct  to  the  ac- 
count of  the  makers  if  their  account  is  good  for  it.  Previous  notice  is,  however,  always 
sent  of  the  maturity  of  such  paper.  Some  banks  require  that  such  paper  be  taken  up  or 
"lifted,"  as  it  is  called,  by  check. 

When  paper  is  discounted  for  a  regular  depositor,  he  is  usually  credited  in  account  with 
the  i)roceeds.  If  the  party  is  not  a  regular  depositor,  the  amount  of  the  proceeds  is  paid 
him  in  cash.  In  transactions  of  this  kind,  the  person  for  whom  the  paper  was  discounted 
is  furnislicd  a  check  signed  by  the  cashier,  called  a  "  Cashier's  Check,'*  which  is  imme- 
diately cashed  by  the  paying  teller  and  placed  among  the  checks  and  charged  to  "Cashier 
Account."  Cashier  account  is  credited  for  this  amount  from  the  Discount  Register.  This 
check  is  drawn  for  the  ])urpose  of  serving  as  a  voucher  of  the  transaction,  and  is  used  for  the 
accommodation  of  the  bank.. 

Siglit  Paper  Dcjiosited. — All  sight  paper  deposited  becomes  the  property  of  tiie  bank 
and  is  treated  as  ca.sli.  When  this  jiajjcr  is  sent  away  to  be  collected,  the  banks  to  which  it 
is  sent  are  charged  for  the  amount  of  it  at  the  time  it  is  sent,  instead  of  at  the  time  it  is  col- 
lected, as  in  the  case  of  sight  paper  received  for  collection.  Whether  received  for  collection 
or  on  deposit,  all  sight  jiaper  is  entered  in  the  Collection  Register. 

Directions  for  using  the  Individual  Ledger. — Write  the  names  of  the  dejjositors 
in  ali>habetical  order,  and  Certificates  of  Deposit,  Certified  Checks,  Cashier  and  the  transient 
accounts  beneath,  on  the  left  of  the  left-hand  page  and  on  the  right  of  the  right-hand  l)age, 
being  particular  to  i)ut  each  name  on  tlie  same  line  on  each  page.  Enter  the  balance  of 
each  account  in  the  "Balance"  column,  opposite  the  depositor's  name".  Enter  each  cus- 
tomer's checks  jniid  during  the  day  in  the  "Checks  in  Detail"  column,  opposite  his  name, 
and  extend  the  aggregate  of  such  checks  to  the  "Total  Checks"  column.  Enter  each  cus- 
tomer's deposit  in  the  "  Deposits"  column,  and  also  any  collection  made  for  him,  from  the 
Collection  Register  or  Collection  Tickler,  and  the  proceeds  of  paper  discoun*^ed  for  him,  not 
paid  in  cash,  from  the  Discount  Register.  Enter  tlie  ])roceeds  of  discounted  paper  that  was 
paid  in  cash  also  in  the  "Deposits"  column,  opposite  "Cashier  Account."  Add  each  cus- 
tomer's dejjosit  for  the  day  to  the  last  balance  of  his  account,  and  from  that  sum  deduct  the 
amount  of  his  checks.  Tlie  dilTerenee  will  show  the  jiresent  balance  of  his  account,  and  will 
be  extended  into  the  next  "Balance"  column,  oppi  site  his  name,  ^\'llen  the  account  is 
overdrawn,  enter  the  amount  of  the  "overdraft"  in  red  ink. 

When  the  l)alances  of  all  the  accounts  have  been  entered  as  directed,  add  the  "  Total 
Checks,"  "  Deposits"  and  "  Balance"  columns. 

To  prove  the  correctness  of  this  work,  lind  the  dilTerenee  between   the  total  checks  and 


OFFICE    ROUTINE    AND    BOOKKKEl'INi;. 


207 


deposits  for  the  day.  This  difference  will  equal  the  difference  between  the  total  balances  of 
the  day  and  the  total  balances  of  the  day  previous.  If  the  "  Balance  "  column  contains  both 
black  and  red  ink  entries,  foot  first  the  black  and  then  the  red  ink  amounts,  and  place  the 
footings  at  the  bottoni  of  the  column  in  corresponding  ink,  and  exhibit  the  difference 
beneath,  which  difference  will  be  tlie  amount  due  depositors. 

The  footing  of  the  "Total  Checks"  column  is  debited  to  deposits  in  the  Journal,  and 
the  footing  of  the  "Deposits"  column  is  credited  to  deposits  in  the  Journal. 

As  depositors  are  credited  in  the  Individual  Ledger  with  the  jiroceeds  of  paper  discounted 
for  tiiem,  and  Deposits  account  is  credited  in  the  Jouriud  for  the  amount  of  the  deposits,  it 
will  be  necessary  to  carry  the  other  results  of  the  Discount  Kegister  to  the  Journal  as  well, 
in  order  that  the  Journal  may  show  tlie  correct  balance  of  cash.  Bills  Discounted  should, 
therefore,  be  debited  and  Collection  and  Exchange  and  Discount  credited  in  the  Journal 
each  day  for  the  footings  of  those  columns  in  the  Discount  Register. 


RESOURCES   AND   LIABILITIES 


SECOND    NATIONAL    BANK 


The  Genei'al  Ledger  of  the  Second  National  Bank  exhibits  the  following  balances  of 
accounts  at  the  close  of  business,  Saturdav,  Dee.  24th.  189-. 


DEBIT    BALANCES. 


CREDIT   BALANCES. 


Cash.  " 

United  States  Bonds,  ^ 

Real  Estate,  ' 

Furnitnre  and  Fixtures,  ' 

Expense*,  ' 
National  Park  Banlj,  New  York  (approved 

reserve  ajrent),  ** 

Chemical  National  Bank,  New  York,  ^^ 

Bills  Discounted,  '» 

Wayne  Co.  National  Bank,  Lyons.  " 

Geo.  K.  Warren  &  Co.,  Bankers,  Bath,  '* 

First  National  Bank,  Kocklord,  " 

Norwich  National  Bank,  Norwick,  -^ 

Fanners  Bank,  Canton,  " 

Third  National  Rank,  Newport,  " 

Exohanjfo  National  Hank,  Bristol,  " 

Traders  National  Bank,  Kinjjston,  =" 
Redemption  Fund  with  U.  S.  Treasurer 

(5^  on  circulation),  ■'' 


32348 

93 

1 

50000 

(ID 

80U0 

(10 

3500 

(HI 

1683 

10 

16323 

8.T 

4027.-, 

13 

1237i;7 

1(1 

3846 

11 

17SK 

.■•.1 

2S70 

97 

814 

(13 

.386 

(17 

1287 

19 

3876 

24 

883 

77 

2330 

00 

299099 

07 

Capital  Stock, 

Circuliitiou. 

Deposiis, 

Discount, 

Collection  and  Exchang^e^ 

Surplus  Fund, 

Undivided  Profits, 


100000 

00 

45(X)0 

0(1 

134937 

13 

3483 

71 

1319 

IS 

117.30 

m 

2718 

42 

299099 


07 


{Open  accomits  in  (he  General  Ledtjer  with  the  above  balances,  us  you  would  if  you  were 
ojienimj  a  new  Ledcjer  in  any  other  business,  and  open  them  in  the  order  indicated  by  the  num- 
ber placed  before  each  accovnt.  Give  the  accounts  numbered  S,  Jf,  5,  6,  21,  22,  S3  and  24,  one- 
fourth  of  a  page  space,  and  all  of  the  others  one-half  a  page  each.  Also  place  the  balance  on 
deposit  in  Chemical  Bank  in  the  Netv  Yorh  Draft  Reyister,  as  illustrated  on piaye  196.) 

The  General  Ledger  used  in  this  set  is  the  ordinary  form  of  Ledger.  Some  banks,  however,  use  a 
form  of  General  Ledger  similar  to  the  Lidividu.il  Ledger  illustrated  on  pages  198  and  191). 


208 


(JI'TICl-;    KOUTIM-;    ANU    1300KKEEPING. 


Tlie  following  are  the  balances  of  depositors'  accounts,  as  shown  by  the  Individual 
Ledger.  It  will  be  observed  that  the  aggregate  of  these  credits  is  the  same  as  the  amount 
credited  to  Deposits  account  in  the  General  Ledger. 

{Credit  each  depositor  in  the  Individual  Ledger,  with  the  amount  opposite  his  lunne.  See 
direct io)u<  for  the  keeping  the  Imlividual  Ledger,  page  200.)  (Arrange  the  accounts  in  alpha- 
betical order. ) 


W.  F.  .lainesou, 

124S« 

ls 

(<  n'iitK  i-tnitimitdr 

Clius.  .1.  liurkf. 

9173 

11 

Forward, 

82147 

08 

K.  L.  Miisdii, 

Mrc 

iiy 

Maxwell  Day, 

S04ti 

25 

D.  J.  S=lii(iiiii. 

24S:t 

74 

Samuel  Wilder, 

7216 

07 

Stillmaii  A:  Jloore, 

li>!»3 

81 

L.  J.  Farnswortli, 

4388 

28 

Jas.  Auiz  *', 

4SI7 

04 

llinffham.  Field  \-  Warci, 

8;M3 

66 

Thomas  11.  Wilson, 

8I1T 

«3 

llenj.  Thomas  i  Son. 

9963 

26 

Ray  HrotliiTS. 

7483 

54 

Lord  &  Hennett. 

6861 

98 

Meyer  ^  KautTTiiaii, 

Mil 

31 

T.  .1.  i-  W.  E.  ITptoM. 

8298 

16 

.lohnsou  Mann  fact  iirintf  Company, 

C9i3 

07 

CertitkHl  Cheeks, 

1762 

19 

Wllliaiu  Uaymond, 

3W4 

C6 

Total, 

131927 

13 

Forward, 

Kil- 

08 

Tlie  following  discounted  paper,  aggregating  the  amount  debited  to  Bills  Discounted 
account  in  the  (ieneral  Ledger,  in  possession  of  the  bank  at  this  date,  should  be  shown  by 
the  Discount  Tickler.  {See  form  of  Discount  'Tickler,  07i  page  202.  Enter  this  discounted 
paper  in  the  Discount  Tickler,  each  item  under  its  date  of  maturitg.  Add  three  days  of  grace 
to  all  time  paper.  Write  the  dates  in  order  in  the  Discount  and  Collection  Ticklers,  entirely 
through  these  hooks,  omit  tiny  Sundays  ami  holidays.) 

Since  there  is  no  entry  or  check  mark  to  be  made  in  tlie  Discount  Hegister  at  the  maturity  of  paper,  it 
is  not  necessary  for  you  to  enter  paper  on  hand  at  this  date  in  your  Discount  Register.  In  business  such 
paper  would,  of  course,  be  entered  in  the  Discount  Hegister  and  Discount  Tickler  at  the  time  it  was  dis- 
counted. All  paper  maturing  on  Sundays  or  holidays  should  be  entered  under  the  dale  of  the  first  busi- 
ness day  following.  The  statutes  of  the  various  States  are  not  uniform  in  regard  to  the  time  of  payment 
of  paper  maturing  on  Sundays  and  holidays.     Remember  to  add  three  days  of  grace  to  all  time  paper. 

Xo.  489.  Note  oi  II.  Wliitaker,  at  30  days  from  Xov.  :i:kl,  indorsed  by  1).  J.  Slocum, 
payable  at  Second  National  Hank,  Lyons,  for  1500.00.  Sent  to  Wayne  County  National. 
(Discount  Tickler,  seepage  202.) 

No.  480.  Note  of  II.  C.  Decker,  at  90  days  Iroiii  Sept.  ::i4th,  indorsed  by  W'm.  Uay- 
mond, i)ayable  at  Exchange  Bank,  City,  for  8750.00. 

No.  488.  Note  of  W.  S.  Cluipin,  indorsed  by  W  W.  Wheeler,  at  2  months  from  Oct. 
23d,  jiayablc  at  WoodrufT's  Bank,  Livonia,  for  500.00.     Sent  to  Woodruff's. 

No.  487.  Note  of  Jfaxwell  l);;y,  indor.sud  bv  Burt,  Brace  &  Co.,  at  1  montii  from  Nov. 
24th,  jiayable  at  our  bank,  for  10000.00. 

No.  483.  Note  of  A.  0.  Bunnell,  indorsed  by  Joseph  Cone,  at  3  months  from  Sept. 
24th,  iiayable  at  Exchange  Bank,  Dansville,  for  10500.00.     Sent  to  Exchange  Bank. 

No.  485.  Note  of  A.  M.  Hastings,  indorsed  by  Samuel  Wilder,  at  C,  montlis  from  .(iine 
25tli,  payable  at  Union  Bank,  City,  for  5000.00. 

No.  484.  Note  of  W.  T.  Tinsley,  indorsed  by  J.  A.  Munson  and  Meyer  &  KaulTman, 
at  30  days  from  Nov.  25th,  ])ayable  at  Wayne  Co.  National  Bank.  Lyons,  for  7500.00. 
Sent  to  Wayne  County  National. 

No.  482.  Note  of  H.  Bancroft,  indorsed  by  Samuel  Wilder,  at  3  months  from  Sept. 
25th,  )>ayable  at  our  bank,  for  9000.00. 


OFFICE    ROUTINE    AND     I'.OOK  KEEPINt;.  209 

No.  409.     Note  of  J.  Wilson  &  Co.,  iiulorscil   l,y  Lord  &  Bennett,  at  GO  (Uiys  from  Oct. 
2<itli,  payable  at  our  bank,  for  15000.00 

No.  494.  Note  of  P.  J.  Sinitii,  indorsed  by  Ray  Hro.s. ,  at  4  months  from  Aug.  20th, 
payable  at  Third  National  Bank,  Newport,  for  7200.00.     Sent  to  Third  National. 

No.  490.  Note  of  Johnson  Mfg.  Go.,  indorsed  by  Freeman  Clarke,  at  90  days  from 
Sept.  27th,  payable  at  our  bank,  for  3000.00. 

No.  495.  Note  of  R.  L.  Mason,  indorsed  by  P.  J.  Moore,  at  1  month  from  Nov.  27th, 
))ayable  at  our  bank,  for  5000.00. 

No.  491.  Note  of  D.  W.  Smith  &  Co.,  indorsed  by  .Tas.  Angle,  at  0  montlis  from  June 
27th,  payable  at  Union  Bank,  City,  for  287().90. 

No.  493.  Note  of  L.  J.  Pratt  &  Co.,  indorsed  by  Jas.  Angle,  at  30  days  from  Nov.  27th, 
payable  at  E.xchange  Bank,  City,  for  1500.00. 

No.  492.  Note  of  Bingham,  Field  &  Ward,  indorsed  by  C.  D.  Cox,  at  90  days  from 
Sept.  29th,  payable  at  our  bank,  for  2150.00. 

No.  498.  Accepted  draft  of  P.  Wise  &  Son,  indorsed  by  Bingham,  Field  &  Ward,  at  10 
days  from  Dec.  18th,  payable  at  Second  National  Bank.  Palmyra,  for  1800.00.  Sent  to 
Second  National. 

No.  497.  Note  of  Creed  &  Wilson,  indorsed  by  Ray  Bros.,  at  3  months  from  Sei)t.  28th, 
payable  at  Union  Bank,  City,  for  2500.00. 

No.  490.  Note  of  Brown  &  Wood,  indorsed  by  Benj.  Thomas  &  Son,  at  00  days  from 
Oct.  29,  payable  at  Third  National  Bank,  Newport,  for  1750.00.     Sent  to  Third  National. 

No.  503.  Note  of  W.  F.  Jameson,  indorsed  by  James  Brackett,  at  30  days  from  Nov. 
30th,  payable  at  our  bank,  for  12000.00. 

No.  505.  Note  of  Robert  Vaughan,  indorsed  by  Lord  &  Bennett,  at  2  months  from 
Oct.  29th,  payable  at  Union  Bank,  City,  for  2540.18. 

No.  504.  Note  of  H.  W.  Glass,  indorsed  by  Wm.  Raymond,  at  2  months  from  Oct.  31st, 
payable  at  Brown  &  Co.'s  Bank,  Canton,  for  785.00.     Sent  to  Farmers. 

No.  500.  Note  of  L.  W.  Davis,  indorsed  by  Thos.  11.  Wilson,  at  4  months  from  Aug. 
31st.  payable  at  Exchange  Bank,  City,  for  3250.00. 

No.  502.  Note  of  Meyer  &  Kauffman,  indorsed  by  Nelson  James,  at  2  months  from  Nov. 
1st,  payable  at  our  bank,  for  4500.00. 

No.  501.  Note  of  Knapp  &  Peck,  favor  of  Meyer  &  Kauffman,  at  00  days  from  Nov. 
2d,  imyable  at  First  National  Bank,  Auburn,  for  3879.00.     Sent  to  First  National. 

No.  500.  Note  of  L.  W.  Brigham,  indorsed  by  Samuel  Wilder,  at  3  months  from  Oct. 
2d,  payable  at  Farmers  Bank,  Canton,  for  1285.42.     Sent  to  Farmers. 

The  following  paper  is  in  possession  of  the  bank  at  this  date  for  collection  for  other 
parties,  as  shown  by  the  Collection  Tickler.  {See  form  of  Collection  Tickler,  on  page  202, 
Enter  this  paper  in  the  Collection  Tickler,  each  item  under  its  date  of  maturity.  Remember 
to  add  three  days  of  grace  to  all  time  jmjter.) 

Since  there  is  no  entry  to  be  made  in  the  Collection  Register  when  the  paper  matures,  excepting  to 
check  sight  paper  when  it  is  paid  and  credited,  you  need  not  enter  this  paper  in  your  Collection  Register. 

No.  819.  For  R.  L.  Mason,  accepted  draft  at  10  days  from  Dec.  13tii,  on  J.  II.  Wing, 
Lyons,  for  584.75.     Sent  to  Wayne  County  National. 

No.  825.  For  Stillman  &  Moore,  accepted  draft  at  3  days  from  Dec.  20th,  on  Porter 
Farley,  Canton,  for  1250.00.     Sent  to  Farmers. 

No.  823.  For  Thos.  H.  Wilson,  John  B.  Sage's  note,  at  30  days  from  Nov.  24th,  jiayable 
at  Geo.  K.  Warren&  Co.'s  Bank,  Bath,  for  817.00,  with  interest.  Sent  to  Geo.  K.  Warren 
&  Co.'s.     ( Write  Int.  over  the  amount  in  C.  T.) 


210  OFFICE    ROUTINE    AND    BOOKKEEPING. 

No.  824.  For  Meyer  &  Kauirtiimi,  Henry  A.  Strong's  note,  at  2  months  fron\  Oct.  24th, 
payable  at  Union  Bank,  City,  for  215.00. 

No.  821.  For  Wm.  Raymond,  accepted  draft  on  W.  D.  McGuire,  at  10  days  from  Dec. 
14th,  payable  at  Norwicli,  for  3G8.90.     Sent  to  Norwich  National. 

No.  822.  For  Samuel  Wilder,  accepted  draft  on  E.  F.  Woodbury,  Newport,  at  60  days 
from  Oct.  2Gth,  for  63.92.     Sent  to  Third  National. 

No.  820.  For  Bingham,  F.  &  W.,  J.  E.  Bootli's  note,  at  1  month  from  Nov.  25tli, 
payable  at  Canton  Savings  Bank,  for  210.25.     Sent  to  Farmers. 

No.  829.  For  Ray  Brothers,  P.  Ford's  note  at  30  days  from  Nov.  25th,  payable  at 
Rockford  County  Bank,  with  interest,  for  1483.50.  Sent  to  First  National.  (  Write  "  Inf." 
over  the  amoiint  in  C.  T.) 

No.  828.  For  Lord  &  Bennett,  J.  M.  Harrison's  note,  at  3  months  from  Sep.  26th, 
payable  in  Bristol,  for  1500.00.     Sent  to  Exchange  National. 

No.  827.  For  Chas.  J.  Burke,  accepted  draft  on  R.  S.  Kenyon,  at  2  months  from  Oct. 
26th,  i)ayable  in  New  York,  for  957.65.     Sent  to  Chemical. 

No.  826.  For  1).  J.  Slocum,  A.  L.  Mabbett's  note,  at  3  months  from  Sej).  2Uth,  payable 
at  Lyons,  for  88.40.     Sent  to  Wayne  County  National. 

No.  834.  For  Jasi  Angle,  J.  L.  Townsend's  note,  at  60  days  from  Oct.  27th,  payable  at 
Bath,  for  396.15.     Sent  to  Geo.  K.  Warren  &  Co.'s. 

No.  833.  For  Johnson  ISIanufacturing  Co.,  accepted  draft  on  F.  W.  Clark,  Norwich,  at 
3  days  from  Dec.  24th,  for  9II.1.'S.     Sent  to  Norwich  National. 

No.  832.  For  Maxwell  Day,  Ward  Kelly's  note,  at  6  mouths  from  June  27th,  payable  at 
Union  Bank,  City,  for  1350.00. 

No.  831.  For  L.  J.  Farnsworth,  accepted  draft  on  Arthur  Ranney,  at  1  month  from 
Nov.  2Sth,  payable  in  Canton,  for  1215.00.     Sent  to  Farmers. 

No.  830.  For  S.  H.  Lowe,  Jacob  Hoekstra's  note,  at  6  months  from  June  28th,  payable 
at  Exchange  Bank,  City,  for  918.30. 

No.  835.  For  F.  W.  Jameson,  accepted  draft  on  A.  M.  Hastings,  Yonkers,  at  10  days 
from  Dec.  18th,  for  850.02.     Sent  to  Chemical. 

In  case  paper  is  payable  where  a  regular  correspondent  can  collect  it  more  easily  than  you  can,  it  is 
belter  to  send  it  to  such  correspondent.     This  explains  why  No.  835  was  sent  to  Chemical  Bank,  New  York. 

No.  836.  For  R.  L.  Mason,  L.  S.  Fulton's  note,  at  2  months  from  Oct.  28th,  payable  in 
Lyons,  for  120.90.     Sent  to  Wayne  County  National. 

MEMORANDA  OF  TRANSACTIONS  FOR   DECEMBER. 

The  following^  transactions  arc  not  to  be  copied  but  .are  to  be  entered  in  tlie  various  books 
as  indicated. 

DECEMBER  26.   18—. 

Discount  No.  486,  note  of  H.  C.  Decker  of  8750.00,  has  been  paid.  {Mark  this  Paid  d- 
Entered,  or  P.  £  E.,  in  the  DiKconnt  Tickler,  and  credit  Bills  Discounted  in  the  Jonrnal, 
short  extending  the  amount,  that  is :  writing  it  inside  as  illustrated  on  page  106,  as  there  mag 
be  other  Bills  Discounted  to  be  credited,  and  in  this  manner  several  may  be  entered  on  one  line 
and  extended  in  total  at  the  close  of  the  day.)     Received  the  following  paper  for  collection: 

No.  837.  For  R.  L.  Mason,  sight  draft  on  L.  W.  Wooden,  Nyack,  for  432.50.  Sent  it 
to  Chemical  Bank.  (C.  R.  See  explanation  of  Collection  Register  and  Collection  Tickler, 
page  204). 


OFFICE    ROUTINE    AND    BOOKKEEPING.  211 

No  entry,  except  in  Collection  Register,  is  required  vintil  notice  has  been  received  of  the  disposition  of 
tlie  paper. 

No.  838.  For  Stillman  &  Moore,  note  of  L.  F.  Cluippell,  at  3  months  from  Oct.  9tli,  for 
1250.00,  payable  at  Second  National  Bank  of  Lyons.  Sent  to  Wayne  Co.  National  Bank, 
Lyons.     \c.  R.  and  C.  T.) 

In  entering  in  Tickler  remember  to  add  the  three  days  of  grace. 

No.  839.  For  G.  H.  Perkins,  siglit  draft  on  W.  B.  Murdock,  Canton,  for  926.18.  Sent 
to  Farmers  Bank,  Canton.     (C.  R.) 

No.  840.  For  Jas.  Angle,  note  of  David  A.  Welles,  at  30  days  from  Nov.  2Gth,  for 
750.00,  with  interest,  payable  at  Union  Bank,  City.     (C.  R.  and  C.  T.) 

No.  841.  For  T.  J.  &  W.  E.  Ujjton,  sight  draft  on  Daniel  Boody,  Hoboken,  for  119.75. 
Sent  to  Chemical  Bank.     (C  R.) 

No.  842.  For  Samuel  Wilder,  accepted  draft  on  Wni.  llaynes,  Norwicli,  at  10  days  from 
Dec.  22d,  for  1842.11.     Sent  to  Norwich  National  Bank.     {€'.  R.  and  C.  T.) 

No.  843.     For  Wm.  Kaymond,  sigiit  draft  on  Peter  Bradley,  Kockford,  for  143.90.     Sent 
to  First  National  Bank,  Rockford.     {C.  R.) 
Discounted  the  following  paper: 

No.  507.  For  Clias.  J.  Burke,  note  of  J.  D.  Winslow,  at  30  days  from  this  date,  payable 
at  Exchange  Bank,  City,  for  858.90.  Discount,  4.72.  Proceeds  credited.  {D.  R.,  D.  T. 
See  explanation  of  Discount  Register,  page  S02,  and  Discount  Paper,  page  SOS;  also  forms  on 
pages  200  and  202.) 

No.  508.  For  D.  J.  Slocum,  note  of  II.  Wlutaker,  at  30  days  from  Dec.  24th,  payable 
at  First  National  Bank,  Lyons,  for  1250.00.  Proceeds  credited  and  note  sent  to  Wayne 
County  National  Bank  for  collection.  Discount,  r..46;  collection,  1.00;  exchange,  1.56. 
{B.  R.,  D.  T.) 

No.  509.  For  Samuel  Wilder,  note  of  A.  M.  Hastings,  at  10  days  from  this  date,  payable 
at  Union  Bank,  City,  for  3875.00.     Discount,  8.40.     Proceeds  credited.     {D.  R.,  D.  T.) 

No.  510.  For  Johnson  Mfg.  Co.,  their  note  at  30  days  from  this  date,  indorsed  by  Free- 
man Clarke,  payable  at  our  bank,  for  5000.00.  Discount,  27.50.  Proceeds  credited. 
(Z>.  R.,  D.  T.) 

The  following  drafts  on  New  York  were  received  among  the  deposits,  and  have  been 
sent  to  Chemical  Bank,  New  York,  for  our  credit:  No.  234,  First  National  of  Dayton,  on 
Shoe  &  Leather,  2875.00;  No.  1851,  Commercial  of  Corning,  on  Metropolitan,  542.75;  No. 
753,  City  Bank  of  Holley,  on  Broadway,  37.20;  No.  115,  Seward's  of  Auinirn,  on  Chemical, 
1123.14;  No.  1321,  Exchange  of  Geneva,  on  Third  National,  2475.00;  No.  4,  Steel  &  Avery, 
City,  on  D.  Slote  &  Co.,  375.00.  (iV.  Y.  D.  R.  See  form  on  page  lf)6.  See  also  explanation 
ofN.  Y.  Draft  Register,  page  201.) 

Drew  the  following  drafts  on  Chemical  Bank:  No.  1585,  favor  Lord  &  Bennett,  325.10; 
exch.,  50^.  No.  1586,  favor  Samuel  Wilder,  1200.00;  exch.,  1.50.  No.  1587,  favor  G.  W. 
Cook,  56.15;  exch.,  15^.  No.  1588,  favor  Meyer  &  Kauffman,  2500.00;  exch.,  3.13. 
No.  1589,  favor  Stillman  &  Moore,  300.00;  exch.,  50^'.  No.  1590,  favor  Thos.  H.  Wil- 
son, 10000.00;  exch.,  12.50.  No.  1591,  favor  W.  F.  Jameson,  2000.00;  exch.,  2.50. 
{N.  Y.  D.  R.) 

Paid  certified  check  No.  4392.     Amount,  384.16.     {I.  L.     Seepage  198.) 

The  Teller  certifies  a  checlc  presented  for  certification,  provided  the  maker's  account  is  good  for  the 
amount,  and  places  a  slip  memorandum  on  a  spindle,  giving  the  name  of  the  maker  and  the  amount  of  the 
check.  The  book  keeper  debits  the  depositor  for  such  check  from  this  slip,  and  credits  Certified  Checks 
account.     When  the  check  is  paid  Certified  Checks  account  is  debited. 


212  OFFICE    ROUTINE    AND    BOOKKEEPING. 

Received  the  following  deposits:  Lord  &  Bennett.  1285.50;  Sainia'l  Wilder,  976.00j 
Johnson  Manufuulurinir  Co.,  2S75.00;  Stillman  &  Moore,  1873.25;  Chas.  J.  Hiirke,  5460,00; 
James  Angle,  375.00;  W.  F.  Jameson,  020. U;  D.  J.  Slocum,  4.3?.12;  Rjiy  Bros.,  850.11; 
Wm.  Raymond,  1750.23;  L.  J.  Farnsworth,  493.92;  Benj.  Thomas  &  Son,  1250.00;  T.  J. 
&  \V.  E.  Upton,  2115.00.  (/.  L.  Enter  the  above  deposits  in  the  "Deposits"  column  of  the 
Individual  Ledger,  and  the  folloiving  checks  in  the  ''  Checks  in  Detail"  column.  See  form 
of  I.  L.  page  lOS. ) 

Ii  will  be  found  necessary  to  write  the  amounts  of  checks  in  very  small  figures  to  afford  room  for  all 
in  the  space  allotted.  It  is  customary  in  business  lo  leave  two  or  more  lines  for  one  account,  if  it  be  a  very 
active  one  involving  the  entry  of  more  checks  than  could  be  entered  on  one  line. 

Deposits  are  entered  from  Deposit  Tickets  made  out  and  brought  to  the  bank  by  the  depositors.  The 
teller,  after  checking  the  deposits  on  the  Deposit  Tickets  and  examining  the  footings,  places  the  tickets  on 
a  spindle  from  which  the  bookkeeper  takes  them  and  makes  the  proper  entries. 

Paid  the  following  checks:  Bingham,  Field  &  AVard,  375  00,  920.50,  1000.00;  Lord  & 
Bennett,  2118.00,  325.00,  92.15;  Samuel  Wilder,  2025.00,  37.50,  325.00,  150.00;  Wm.  Riy- 
mond,  200.00,  480.00,  3115.00;  Meyer&  Kanffman,  4275.00,  85.00;  Thos.  H. Wilson,  8000.00;. 
Stillman  &  Moore,  2500.00,  187.50,  300.00;  R.  L.  Mason,  3250.00,  132.00,  247.18;  AV.  F. 
Jameson,  2000.00,  342.25,  1175.00.     (/.  L.     See  "  Directions  for  using  1.  L.,"  page  206.) 

Collection  and  E.xchauge,  from  Teller's  Memorandum,  7.25.  (J.  See  form  of  Journal, 
page  106.) 

The  items  of  Collection  and  E.\change  on  sight  drafts  and  foreign  checks  received  on  deposit  are 
entered  in  the  Teller's  Jlenioraiidum  at  the  time  the-  deposits  arc  made,  and  are  either  paid  in  cash  by  the 
depositors  or  deducted  from  the  deposit  tickets.  Collection  and  Exchange  is  credited  in  the  Journal  at 
the  end  of  the  diiy  for  the  sum  of  such  items. 

You  will  now  balance  the  Xew  York  Draft  Register  {see  form  on  pages  198,  197),  and 
crtrry  the  aggregate  of  the  drafts  drawn  on  Chemical  National  Bank  to  the  credit  of  that 
bank  on  the  left-hand  side  of  the  Journal,  the  footing  of  the  Collection  &  E.xchauge  columa 
to  the  Collection  &  E.xchauge  column  on  the  left-hand  side  of  the  Journal,  and  the  aggre- 
gate of  remittances  to  Chemical  Xalional  Bank  to  the  debit  of  that  bank  on  the  right-hand 
side  of  tho  Journal  (see  form  of  Journal,  pages  196,  197).  Add  and  rule  the  columns  in  the- 
Discount  Register  {see  form  on  pages  200,  201),  and  enter  the  footing  of  the  column  contain- 
ing the  amount  of  paper  discounted  to  the  debit  of  Bills  Discounted  on  the  right-hand  side 
of  the  Journal,  the  footings  of  the  Discount  and  Collection  &  E.xchauge  columns  to  the 
credit  of  those  accounts  on  the  left-hand  side  of  the  Journal.  The  items  in  the  Proceeds 
column  should  be  credited  to  the  jjarties  for  wiioin  discounted,  in  the  Individual  Ledger, 
writing  the  amounts  over  the  deposits  in  cases  where  deposits  have  been  made  this  day,  and 
placing  the  letter  "d"  against  the  amount  as  illustrated  in  the  form  of  Individual  Ledger 
shi)wn  on  page  196.  Check  each  ])osting  in  the  Discount  Register  as  illustrated  on  i)age 
201. 

Extend  the  balances  of  depositors'  accounts  into  the  "  Balance"  column  in  the  Individ- 
ual Ledger,  and  foot  the  column;  foot  tiie  "Total  Checks"  and  **  Deposits"  column,  and 
carry  tile  footings  to  the  Journal.  {Sec" Directions  for  using  I.  L.," page  200.)  Rule  the 
Individual  F^dger  at  the  bottom  ot  the  page. 

You  will  also  add  and  rule  the  Journal,  carrying  tiie  footings  of  the  Collection  &  Ex- 
change into  the  General  column.  {See  form  of  Journal  on  pages  196  and  197.)  Post  all  the 
items  in  tlie  General  column  on  the  left-htmd  i)age  to  the  credit  of  the  respective  accounts 
lu  the  General  Ledger,  and  the  footing  of  the  Collection  &  Exchange  column  to  the  credit 


OFFICE    ROUTINE    AND    BOOKKEEPING.  213 

of  Collection  &  Exchange  account  in  the  General  Ledger,  and  those  in  the  General  column 
on  the  right-hand  page  to  tlie  debit  of  the  respective  accounts.  Debit  Cash  account  in  the 
General  Ledger  with  the  footing  of  the  left-hand  page  of  tlie  Journal,  and  credit  it  with 
the  footing  of  the  right-hand  page. 

DECEMBER  27,    189-. 

Received  advice  from  Wayne  County  National  Bank,  Lyons,  tiiat  coUoction  No.  81!) 
has  been  paid  and  placed  to  our  credit.  {J.  &  I,  L.  Charge  11'.  C  N.  Bank,  5Slf..7o,  and 
credit  It.  L.  Mason,  oSJ^.25,  and  Coll.  and  Ex.,  50c.  Check  Paid  and  Entered,  or  P.  £  E. 
in  the  Collection  Tickler.     See  next  to  last  'paragraph  on  page  205. ) 

Also  received  notice  from  Farmers  Bank,  Canton,  that  collection  No.  825  has  been  jiaid 
and  placed  to  our  credit.  (./.  &  I.  L.  Charge  Fanners  Bank,  1250.00,  in  J.,  and  credit 
Stillman  £  Moore,  mQ.OO,  in  I.  L.  and  Coll.  <.(■  E.t.,  1.00  in.  J.  Check  P.  £  E.  in  C.  T. 
See  next  to  last  paragraph  on  page  205. ) 

Collection  No.  824  has  been  paid.  (/.  L.  Credit  Meger  £  K.,  215.00,  and  check  P.  & 
E.  in  G.  T.     See  third  last  paragraph  on  page  205.) 

Discount  No.  487  has  been  placed  among  the  ciiecks,  and  will  be  charged  to  the  account 
of  the  maker.  Maxwell  Day,  at  the  close  of  business  for  the  day.  [J.  Check  P.  £  E.  in 
D.  T.     See  last  paragrctph  on  page  205.) 

Since  this  note  was  made  by  one  of  our  depositors,  and  liis  account  is  good  for  the  amount,  it  is  only 
necessary  to  credit  Bills  Discounted,  10000.00,  at  this  time,  and  place  the  note  among  the  vouchers  that  are 
to  be  charged  to  depositors.     See  list  of  checks  paid,  below. 

Received  advice  from  Wayne  County  National  Bank,  that  discount  No.  489  has  been 
paid  and  jilaced  to  our  credit.  (/.  Credit  Bills  Discounted  and  debit  W.  C.  JV.  Baiik 
1500.00,  and  check  Paid  and  Entered,  or  P.  £  E.,  in  the  Discount  Tickler.) 

Received  draft  No.  IGl,  on  Sixth  National  Bank,  New  York,  from  Woodruff's  Bank, 
Livonia,  for  proceeds  of  discount  No.  488,  less  25^'  collection  and  25{^  exchange.  {J.  Credit 
Bills  Discounted,  500.00,  and  debit  Coll.  £  Ex.,  50<f.) 

The  draft  received  will  be  charged  to  Chemical  National  Bank,  in  the  N.  Y.  Draft  Register,  later  in 
the  day,  with  other  drafts  received  during  the  day. 

Eeceived  the  paper  described  below,  from  the  following  banks,  for  collection  and  credit: 
From  Norwich  National  Bank,  H.  B.  Cook  &  Co.'s  sight  draft  for  4150.00,  on  N.  Fisher  & 
Co.,  City,  dated  Dec.  26.  Presented,  collected  and  credited.  (C.  B.,  J.  Credit  N.  N. 
Bank,  ^160.00,  and  check  in  both  columns  in  the  Collection  Begister.) 

From  Exciiange  National  Bank,  Bristol,  D.  J.  Loomis'  check  on  Union  Bank,  City, 
dated  Dec.  2G,  for  493.18.  Collected.  (C.  B.,  J.  Credit  Exchange  N.  Bank,  Bristol, 
JfiS.  18.     See  sixth  paragraph  on  page  205. ) 

From  Traders  National  Bank,  Kingston,  A.  B.  Wilson's  sight  draft  on  Johnson  Mfg. 
Co.,  dated  Dec.  26,  for  573.90.  Presented,  accepted  and  placed  among  the  checks.  [C.  R., 
J.  Credit  Traders  A".  Bank,  King.'iton,  573.90.  See  last  piaragraph  on  page  205.  See  list 
of  checks  for  this  date.) 

Eeceived  remittances  in  drafts  on  New  York  from  tlic  following  banks,  on  account. 
No.  943,  First  National  of  Rockford,  on  Broadway  Bank,  for  2500.00;  No.  341,  Geo.  K. 
Warren  &  Co.,  Batli,  on  Union  Trust  Co.,  for  1500.00.  (Credit  the  banks  from  jvhich  the 
drafts  are  received  at  once,  in  the  Journal,  and  enter  the  drafts  on  the  left-hand  side  of  the 
N.  Y.  Draft  Register,  with  other  drafts,  later  in  the  day.) 


214  OFKICK    ROUTINE    AND    HOUKKEEPING. 

Tlic  following  sight  draft.s,  datud  this  day,  on  individuals  and  firms,  received  on  deposit 
from  our  customers,  and  included  in  deposits  enumerated  below,  have  been  sent  to  our  cor- 
respondents for  our  credit: 

W.  F.  Jameson,  on  D.  B.  Hill,  Lyons,  for  225.00.  Sent  to  "Wayne  Co.  National,  and 
charged  to  their  account.  {C.  IL,  J.  Debit  Wayne  Co.  National,  225.00.  In  "For  Whom 
Collected"  column  in  C.  R.  write  ''Cash,"  as  this  was  received  as  a  cash  deposit.  See  ''Sight 
Paper  Deposited,"  page  206.) 

As  Ihis  item  is  included  in  the  iiniuunl  of  W.  K.  Jameson's  deposit  mentioned  later  no  entry  bhould  be 
made  to  liis  credit  at  this  time. 

Johnson  Mfg.  Co.,  on  ]'.  0.  WarnMi.  Bristol,  for  2X00.00.  Sent  and  charged  to  Exchange 
National  Bank,  Bristol. 

Maxwell  Day,  on  1).  L.  Brice  &  Co.,  Kingston,  for  340.00.  Sent  and  charged  to  Traders 
National  Bank,  Kingston. 

Jas.  Angle,  on  A.  A.  Wildman,  Bockford,  fur  IS.OO.OO.  Sent  and  charged  to  First 
National  Bank,  Rockford. 

Discounted  the  following  paper:  For  Johnson  Mfg.  Co.,  P.  L.  Paine's  accepted  draft,  at 
30  days  from  Dec.  24lh,  jiayable  at  First  National  Bank,  Lyons,  for  4325.00.  Discount, 
2L63;  collection,  4.00;  exchange,  5.41.     Sent  to  W.  C.  N.  Bank.     (D.  R.,  D.  7'.) 

For  Maxwell  Day.  D.  H.  Davis'  note,  at  3  months  from  Oct.  23,  payable  at  Woodruff's 
Bank,  Livonia,  for  1500.00.  Discount,  7.50;  collection,  1.00;  exchange,  1.88.  Sent  Wood- 
ruff's Bank.     {See first  paragraph  on  page  206.) 

For  Samuel  Wilder,  Isaac  Willis'  note,  at  GO  days  from  Nov.  18,  payable  at  Farmers 
Bank,  Canton,  for  2394.80.  Di.soount,  9.58;  collection,  2.00;  exchange,  2.98.  Sent  Farm- 
ers Bank. 

For  Thomas  11.  Wilson,  J.  D.  Shultz'  note,  at  30  da.  from  date,  jiayable  at  Coming's 
Bank,  Richmond,  for  398.50.  Discount,  2.19;  collection,  50^;  exchange.  oO^*.  Sent  Com- 
ing's Bank. 

For  R.  L.  Mason,  T.  G.  Lord's  note,  at  4  months  from  Sejit.  17,  payable  at  Norwich 
National  Bank,  for  960.00.  Discount,  3.84;  collection,  50^'';  exchange,  1.20.  Sent  Norwich 
National  Bank. 

Received  the  following  paper  for  collection:  From  W.  F.  Jameson,  draft  at  10  days  from 
date,  on  W.  L.  Peters  &  Co.,  Iloboken,  for  918.75.     Sent  Chemical  Bank.     (C.  R.,  C.  T.) 

From  Ja.s.  Angle,  note  of  W.  F.  Burroughs,  at  2  months  from  Nov.  8,  payable  at  Ex- 
change Bank,  City,  for  1290.00. 

From  Ray  Bros.,  note  of  Miller  &  Co.,  at  2  months  from  Nov.  8,  payable  at  First 
National  Bank,  Kingston,  with  interest,  for  482. GO.     Sent  Traders  National,  Kingston. 

From  Meyer  &  Kauffman,  draft  at  15  days  from  date  on  Wendell  &  Holmes,  Canton,  for 
1194.83.     Sent  Farmers  Bank,  Canton. 

Certified  Lord  &  Bennett's  check  for  2500.     (/.  L.     See  note  at  bottom  of  page  211.) 
Drew  the  following  drafts  on  Chemical  Bank:  No.  1592,  favor  Lord  &  Bennett,  1141.80; 

e.\ch.  1.00.     No.  1593,  favor  Bingham,  F.  &  W.,  132.20;  exch..  25?".     No.  1594,  favor  Wm. 

Rjiymond,  437.00;  exch.,  oO^*.     No.    1595,  favor  Johnson  Mfg.   Co.,   6444.00;  exch.  6.00. 

No.  159G,  favor  Ray  Bros.,  449G.00:  exch.,  4.00.     No.  1597,   favor  R.  L.  Mason,  424G.00; 

exch.,  4.00.     {Sec  last  paragraph  on  j)age  211.     See  form  on  pages  196,  197.) 

The  following  drafts  on  New  York,  received  during  the  course  of  to-day's  business,  have 
been  remitted  to  Chemical   Bank   for  bur  credit:  No.  IGl,  WoodrufTs  Bank  of  Livonia,  on 


OFFICE    ROUTINE    AND    BOOKKEEPING.  215 

Sixth  Natiouiil,  499.50;  No.  943,  First  National  of  Kockford,  on  Broadway  Bank,  2500.00; 
No.  341,  Goo.  K.  Warren  &  Co.,  Bath,  ou  Union  Trust  Co.,  1500.00;  No.  108,  Ward's 
Bank  of  Union,  on  Third  National,  80.1)0;  No.  347,  First  National  of  Butler,  on  Chemical, 
583.11;  No.  4043,  Second  National  of  Byron,  on  Broadway  Bank,  2586.74;  No.  48,  Clark's 
Bank  of  Warsaw,  on  Sixth  National,  138.18.     (.See  last  paragraph  on  page  SOI.) 

Received  the  following  deposits:  T.  J.  &  W.  E.  Upton,  1175.00;  Benj.  Thomas  &  Son, 
435.57;  Bingham,  Field  &  Ward,  2850.00;  Samuel  Wilder,  894.13;  Maxwell  Day,  2948.75; 
Johnson  Mfg.  Co.,  3480.00;  Meyer  &  Kauffinan,  550.00;  Thos.  II.  Wilson,  2294.18;  Jas. 
Angle,  1840.00;  D.  J.  Slocnm,  486.78;  W.  F.  Jameson,  1500.00.     {Sec  I.  L.  page  198.) 

Paid  the  following  checks:  Bingham,  Field  &  Ward,  132.40,  1892.18,  450.00;  Wm.  Ray- 
mond, 500.00,  437.50,  140.00;  Johnson  Mfg.  Co.,  0450.00,  573.90;  Maxwell  Day  (note), 
10000.00;  Ray  Bros.,  115.00;  973.02,  4500.00;  Thomas  H.  Wilson,  56.75,  1394.11,  250.00; 
Stillman  &  Moore,  7500.00;  R.  L.  Mason,  4250.00,  1400.00;  Lord  &  Bennett,  2500.00, 
1142.80,  177.14.     {See  I.  L.  page  108.) 

Collection  and  Exchange,  from  Teller's  Memorandum,  6.94.      {See  note,  page  212.) 

Paid  cash  for  office  stationery,  j^ostage,  etc.,  12.18.     {Expense.) 

Rule,  foot,  and  post  as  instructed  for  the  previous  day. 

DECEMBER  28,   189-. 

Received  advice  from  Chemical  National  Bank,  New  York,  tliat  collection  No.  841  has 
been  paid.  {Check  in  "  Paid"  column  of  C.  R.  Charge  Chemical  Bank  in  N.  Y.  D.  R., 
119.75.  Credit  T.  J.  &  W.  E.  Upton,  119.25 in  I.  L.;  Coll.  <f-  Exch.,  50c. ,  in  J.  See  "Collec- 
tion Paper,"  page  205.) 

Received  notice  that  collection  No.  837  lias  also  been  paid.  {CJiarge  Chemical  Bank, 
432.50,  iV'.  r.  D.  R.,  and  credit  R.  L.  Mason,  432.00,  and  Coll.  d-  Exch.,  50c.  See  "Col- 
lection Paper,"  page  205.) 

Received  advice  from  First  National,  Rockford,  that  collection  No.  843  has  been  paid. 
{Charge  First  National  Batik,  Rockford,  143.90.  Credit  Wm.  Raymond,  143.40;  Coll.  J 
Exch.,  50<l^.) 

Received  advice  from  Geo.  K.  Warren  &  Co.,  Batli,  tliat  collection  No.  823  has  been 
paid.  {Check  P.  £  E.  in  C.  T.  Charge  Geo.  K.  W.  &  Co.,  817.00,  and  33  days'  interest, 
4.49;  total,  821.49.     Credit  Tiws.  U.  Wilson,  820.99;  and  Coll.  &  Exch.,  50c.) 

From  Norwich  National  Bank,  that  collection  No.  821  has  been  paid  and  credited. 
{Credit  Wm.  Raymond,  368.40,  and  Coll.  £  Exch.,  50c.;  and  charge  Norwich  National, 
368.90.) 

From  Farmers  Bank,  Canton,  that  collection  No.  839  lias  been  paid.  {Open  an  account 
with  G.  H.  Perki7is  on  first  vacant  line  in  I.  L.,  and  credit  him  925.68;  credit  Coll.  £  Exch., 
oOc,  and  charge  Farmers  Bank  926.18  in  J.) 

Received  from  Exchange  National  Bank,  Dansville,  their  draft.  No.  1486,  on  Bowery 
Bank,  New  York,  for  10494.75,  proceeds  of  discount  No.  483,  less  their  charge  for  collec- 
tion, 5.25.  (/.  Check  P.  &  E.  in  D.  T.  Credit  Bills  Discounted,  10500.00,  and  debit  Coll. 
&  Exch.,  5.25,  in  the  Jouriial.  Tlie  difference  represents  the  draft  received,  xohich  will  he 
sent  and  charged  to  Chemical  Bank  with  others  at  the  close  of  the  day. ) 

The  Exchange  National  Bank  of  Dansville,  not  being  a  regular  correspondent,  charges  us  one-twentieth 
per  cent,  for  collecting  paper  sent  them.  This  charge  is  about  one-half  of  that  made  by  us  to  the  customer 
for  whom  we  discounted  the  note,  the  difference  showing  our  profit  in  that  transaction  from  collection  alone. 


216  OFFICli    KOUTINK    ANU    BOOKKEEPING. 

Discounts  Nos.  485,  482  and  499,  i)ayiible  in  the  city,  iiave  been  i>aid.  {See  "Discount 
Pa])er,"  page  206.) 

Received  the  paper  described  below,  from  tlie  following  banks,  for  collection  and  credit: 
From  Geo.  K.  Warren  &  Co.,  Bath,  A.  L.  Underhill's  draft  on  Harvey  Brown,  dated  this 
day,  at  2  days'  sight,  942.17.  The  drawee  accepts  the  draft  upon  ])rescntation,  ]iavable  at 
Union  Bank,  City.     (C.  A'.,  C.  T.) 

From  First  National,  Hockford,  Brooks  &  Smith's  sight  draft  on  0.  W.  Lansing,  city, 
1455.00.     Collected  and  credited  to  First  National  Bank,  Rockford,  1455.00.     (C.  R.,J.) 

From  Farmers,  Canton,  S.  P.  Stevens'  sight  draft  on  M.  M.  Ward,  32.18.  Collected 
and  credited  to  Farmer.s,  Canton,  32.18. 

From  First  Nation;il,  Belleville,  B.  T.  Jones  &  Co.'s  sight  draft  on  Yeoman  &  Blake, 
411.75.  Collected  and  remitted  draft  Xo.  1598  on  Chemical  Bank  for  411.50.  Collection, 
25c.  {Enter  in  C.  R.  onUj  at  this  time.  Enter  the  collection  in  the  Exchange  column  in  N. 
Y.  D.  R.) 

This  draft  will  be  entered  to  the  credit  of  Cbemical  Bank,  in  the  N.  Y.  D.  H.,  with  others,  at  close  of 
banking  hours,  and  the  collection  will  be  credited  to  Coll,  &  Exch.  at  the  same  time  by  being  entered  in  the 
Exchange  column  in  that  btiok.  These  entries  will  be  made  from  the  stub  of  the  draft  book.  Since  the 
First  National  Hank  of  Belleville  is  not  a  regular  correspondent,  we  make  a  charge  for  collecting  the  fore- 
going draft,  but  only  one  half  of  the  charge  wc  would  make  to  au  individual.  No  charge  for  exchange. 
See  list  of  drafts  drawn  on  Clieinical  Hank. 

Received  remittances  from  our  correspondents,  on  account,  as  follows:  From  Wayne  Co. 
National,  draft  No.  4142,  on  Fifth  National,  New  York,  for  5000.00.  From  Third  National, 
Newport,  draft  No.  373,  on  Bowery  Bank,  New  Y''ork,  for  1287.19.  (J.  Credit  the  banks 
making  these  remittances.) 

These  drafts,  with  others  received  during  to-day's  business,  will  be  remitted  to  Chemical  Bank  at  the 
close  of  banking  hours,  and  at  that  time  will  be  charged  to  Chemical  Bank  in  the  N.  Y.  D.  R. 

Remitted  our  draft.  No.  1599,  on  Cheniieul  Bank,  for  3000.00,  to  Norwich  National 
Bank,  on  account. 

This  will  be  credited  to  Chemical  Hank,  with  others,  at  the  close  of  the  day.  This  could  hz  entered  in 
the  N.  Y.  D.  K.  at  once,  but  these  drafts  are  usually  torn  from  a  stub  when  issued,  and  are  entered  in  the 
N.  Y.  D.  R.  from  the  stubs  at  the  close  of  the  day. 

The  following  sight  drafts  on  individuals  and  firms,  received  on  dejiosit,  have  been  sent 
forward  for  collection  and  credit:  Lord  &  Bennett,  on  W.  H.  Atwater,  Lyons,  211.50;  seat 
and  charged  to  Wayne  Co.  National.  Win.  Raymond,  on  W.  Dunn,  Co.-ning,  275.50;  sent 
to  Livingston's  Bank,  and  charged  to  Livingston's  Bank  iu  Sundry  Banks  and  Bankers  ac- 
counts.    {See  "  Sight  Paper  Deposited,"  page  206.) 

Livingston's  Hank  not  being  a  regular  c()rres|>ondent,  we  do  not  wish  to  open  a  separate  account  with 
it.  We  therefore  open  an  account  with  Sundry  Hanks  and  Hankers,  and  debit  that  account  for  theamount 
of  the  draft  sent  Livingston's  Bank.  Debit  Livingston's  Bank  in  the  Journal,  and  place  S.  B.,  the  initials 
for  Sundrj'  Hanks  and  Bankers,  after  the  entry,  and  post  the  item  to  Sundry  Hanks  and  Bankers  account  in 
the  General  Ledger.  When  the  proceeds  are  received,  credit  Livingston's  Bank  for  the  fare  of  the  draft, 
and  post  it  to  the  credit  of  Sundry  Banks  an<l  Bankers  account,  on  the  same  line  witli  the  debit  to  Liv- 
ingston's Bank,  and  debit  Coll.  &  Exch.  in  the  .Journal  for  the  collection. 

Discounted  the  following  ]ia]ter:  For  1).  J.  Slooiim,  Ward  &  Cobb's  note,  at  30  days 
from  date,  for  3000.00,  indorsed  by  J:is.  Jackson,  Jr.,  ]iayabk>  at  Second  National  Bank, 
Lyons;  sent  Wayne  Co.  National  for  collection.  Discount,  1G.50;  collection,  3.00;  exchange, 
3.75. 


OFFICE    KUUriNK    AM)     lu  )()K  K  KKl'l  \G.  217 

For  Jas.  Angle,  Young  &  Baldwin's  note  for  liSd.dO,  at.  15  ilays  fi-om  date,  piiyablo  at 
Union  Bank,  City.     Discount,  1.14. 

For  L.  J.  Farnsworth,  T.  K.  Scott's  nolo  for  ISOd.Od,  at  1  month  from  2:3<l  inst.,  pay- 
able at  Exchange  Bank,  City.     Discount,  8.70. 

For  Bingham,  Field  &  Ward,  Wni.  Kaymond's  note  for  1450. On,  at  5  days  from  this 
date,  payable  at  our  bank.     Discount,  l.'Xi. 

For  Meyer  &  Kauffman,  their  note  at  2it  days  from  tiiis  date,  for  2000. 0(>,  indorsed  bv 
W.  M.  Bond,  payable  at  our  bank.     Discount,  T.(i7. 

Received  the  following  jjaper  for  collection:  From  D.  J.  Slocum,  his  sight  draft  on 
Ward  &  Holmes,  Lyons,  for  149.44;  sent  AVayne  County  National. 

From  Samuel  Wilder,  his  sight  draft  on  King  t1-  Co.,  Canton,  for  SotJ.lMt;  sent  Farmers 
Bank,  Canton. 

From  Chas.  J.  Burke,  his  sight  draft  on  Warren  &  Co.,  Belfast,  for  1492.00;  sent  First 
National  Bank,  Belfast. 

From  L.  W.  Perry,  his  sight  draft  on  Wilson  &  Caldwell,  Newport,  for  304.87;  sent 
Third  National,  Newport. 

From  Thos.  II.  Wilson,  his  sight  draft  on  Nellis  &  Knox,  Rockford,  for  182.50;  sent 
First  National,  Rockford. 

Drew  the  following  drafts  on  Chemical  Bank:  No.  1598,  favor  First  National,  Belle- 
ville, 411.50;  e.xch.,  25^.  No.  1599,  favor  Norwich  Natioaal,  3000.00.  No.  1600,  favor 
T.  J.  &  W.  E.  Upton,  400.00;  exch.,  50'/.  No.  IGOl,  favor  Lord  &  Bennett,  52.25;  e.xch., 
15^.  No.  1G02,  favor  Samuel  Wilder,  1790.26;  exch.,  2.24.  No.  1603,  favor  Johnson 
Mfg.  Co.,  5992.50;  exch.,  7.50.     No.  1604,  favor  D.  J.  Slocum,  74.75;  exch.,  15'/. 

Remitted  to  Chemical  Bank,  for  our  credit,  the  following  drafts  on  New  York,  received 
during  the  day:  No.  1486,  Exchange  National  Bank,  Dansville,  on  Bowery  Bank,  10494.75; 
No.  4142,  Wayne  County  National  Bank,  Lyons,  on  Fifth  National,  5000.00;  No.  372, 
Third  National,  Newport,  on  Bowery  Bank,  1287.19;  No.  1009,  First  National,  Memphis, 
on  Broadway,  63.94;  No.  416,  Wheeler's  Bank,  Belleville,  on  Second  National,  489.43;  No. 
3142,  Richmond's  Bank,  Batavia,  on  Chemical,  6300.00;  No.  113,  Ray  Bros,  on  Cook  & 
Lane,  New  York,  987.00. 

Received  the  following  deposits,  as  shown  by  deposit  tickets  filed:  Lord  &  Bennett, 
3000.00  Benj.  Thomas  &  Son,  1790.00;  L.  J.  Farnsworth,  315.00;  Wm.  Raymond,  775.00; 
Johnson  Mfg.  Co.,  5275.00;  Ray  Bros.,  2910.00;  Thos.  II.  Wilson,  1800;  Stillman  &  Moore, 
6150.00;  R.  L.  Mason,  8219.40;  Chas.  J.  Burke,  3926.42. 

Paid  the  following  checks:  T.  J.  &  W.  E.  Upton,  242.69,  400.00;  Lord  &  Bennett, 
52.75,  146.90,  2234.46;  Bingham,  Field  &  Ward,  824.50,  640.00,  1138.55;  Samuel  Wilder, 
2134.30,  86.25;  Johnson  Mfg.  Co.,  896.81,  27.50,  6000.00;  Ray  Bros.,  4500.00;  Jas.  Angle, 
1690.00,  47.25;  D.  J.  Slocum,  75.00,  1792.03,  250.00. 

Collection  &  Exchange,  from  Teller's  Memorandum,  16.92. 

Rule  and  foot  the  New  Y(n-k  Draft  Register,  the  Discount  Register,  and  the  Individual 
Ledger,  and  carry  the  results  to  the  Journal.  Rule,  foot  and  jiost  the  .Journal,  as  directed 
on  ])age  212. 

DECEMBER  29,    189-. 

Received  advice  that  the  following  collections  have  been  paid:  No.  822;  Coll.  &  Exch., 
25(i.  No.  820;  Coll.  &  Exch.,  oO'f:.  No.  829;  Interest,  8.16;  Coll.  &  E.xch.,  1.00.  {J.  S 
I.  L.) 


218  OKI-ICE    ROUTINE    AND    bOOKKEKl'ING. 

Collection  No.  840  has  been  jiaid.  {Crfdit  Jns.  Amjle,  750.00,  and  SS  davs'  interest, 
J,. IS;  total,  Ihlt.lS.     I.  L.) 

Be  careful  to  muke  the  proper  check  mark  in  the  C.  T. 

Received  advice  from  Wayne  County  National  Bank  that  discount  No.  484,  has  been 
paid,  7500.00. 

Discount  No.  490,  i>ayable  at  our  bank,  has  been  charged  to  the  account  of  tlie  maker. 
(See  "Discount  Paper." page  206.) 

Received  3000.00  on  deposit  from  W.  0.  Snyder.  Issued  him  a  Certificate  of  Deposit. 
{Credit  Certificates  of  Deposit  hi  the  Individual  Ledger.  Open  an  account  with  Certificates 
of  Deposit. ) 

W.  G.  Snyder  is  not  a  customer,  and  instead  of  crediting  him  for  his  deposit,  we,  at  his  request,  issue 
him  a  Certificate  of  Deposit,  and  credit  Cerlificales  of  Deposit  account.     A  Cerlifitaleof  Deposit  is  a  paper 

headed  with  the  niime  and  location  of  the  bank,  and  the  date,  stating  that  Mr.  has  deposited 

dollars  in  this  institution,  payable  to  himself,  or  order,  upon  return  of  this  certificate  properly  indorsed, 
and  is  signed  by  the  president  or  cashier,  or  both. 

Received  the  paper  described  below,  from  the  banks  named,  for  collection  and  credit: 
From  Farmers,  Canton,  P.  G.  White's  sight  draft,  dated  28th,  on  Jas.  Angle,  for  94.16. 

Presented,  accepted,  and  placed  among  the  checks.     (Credit  Farmers,  Canton,  94..16.) 
From  D.  G.  Lamson's  Bank,  Belfast,  C.  A.  Stone's  sight  draft,  dated  27th,  on  Hart  & 

Shepard,  for  298.75,     Collected.     Remitted  our  draft  on  Chemical  Bank  for  the  amount, 

less  25?'.  for  collection.     (C.  R.) 

This  draft  will  be  entered  in  the  N.  Y.  I).  R.  at  the  close  of  business  hours.  No  entry  at  this  time 
excepting  in  the  C.  U. 

From  Wayne  County  National,  AVcaver  &  Janes'  sight  draft  on  Peter  Wallace  &  Co.,  for 
873.25,  dated  2Sth.     Collected.     (See  third  laM  paragraph  on  page  205.) 

From  Traders  National,  Kingston,  Jas.  Angle's  note,  at  3  months  from  Sept.  30th. 
indorsed  by  E.  II.  Mott  &  Co.,  for  1400.00,  payable  at  our  bank. 

From  Wisncr  &  Clark's  Bank,  Clyde,  W.  A.  Hood's  note,  indorsed  by  C.  A.  Parry  v!? 
Co.,  for  375.00,  at  30  days  from  Dec.  10th,  payable  at  Exchange  Bank,  City. 

From  Norwich  National,  Warren  &  Sharp's  sight  draft  on  L.  W.  Gage  for  162.11,  dated 
Dec.  28th.     Collected. 

The  following  described  paper,  received  on  deposit,  has  been  sent  to  the  banks  named, 
for  collection,  and  charged  to  their  respective  accounts:  Samuel  Wilder's  sight  draft  on 
Tiibbs  &  Co.,  Kingston,  for  194.50;  to  Traders  National,  Kingston.  D.  J.  Slocum's  sight 
draft  on  Norman  Lacy,  Rockford,  for  34.17;  to  First  National,  Rockford.  Johnson  Mfg. 
Co.'s  sight  draft  on  B.  A.  Cole,  Livonia,  for  86.40;  sent  to  WoodrulTs  Bank,  Livoniii. 
(Charge  Woodruff's  Bank  in  Sundry  Banks  and  Bankers  account.     See  note  on  page  216.) 

Bcnj.  Thomas  &  Son's  sight  draft  on  ^I.  F.  Burgess,  Newport,  for  346.94;  sent  Third 
National,  Newport.  Lord  &  Bennett's  sight  draft  on  L.  M.  Newton,  Bath,  for  732.81;  sent 
Geo.  K.  Warren  &  Co.,  Bath.  Bingham,  Field  &  Ward's  sight  draft  on  Newman  &  Gregg, 
Bristol,  for  17.39;  sent  Exchange  National,  Bristol. 

Received  the  following  paper  from  our  customers  and  others  for  collection:  From  Ray 
Bros.,  sight  draft  on  G.  II.  Wilson  &  Co.,  Ilolley,  for  182.90;  sent  City  Bank,  Uolley. 
From  Thos.  II.  Wilson,  Iladley  &  Holmes'  note,  at  3  months  from  Oct.  4th,  for  918.92, 
payable  at  P'irst  National,  Lyons;  sent  Wayne  County  National,  Lyons.  From  Dunn  & 
Cole,  sight  draft  on  D.  F.  Coates,  Geneva,  for  803.50;  sent  Exchange,  Geneva. 


OFFICE    ROUTINE    AND    1500K  KEEI'I  NG.  219 

Discounted  the  following  paper:  For  R.  L.  Mason,  Havens  &  Co.'s  note  for  450.00,  at 
30  days  from  this  date,  payable  at  Union  Bank,  City.     Discount,  2.48. 

For  Samuel  Wilder,  his  note  for  1500.00,  indorsed  by  J.  A.  Lindsay,  at  30  days  from  the 
28th  inst.,  payable  at  our  bank.     Discount,  8.00. 

For  Meyer  &  Kauffman,  Robert  Moore's  note  for  2200.00,  at  20  days  from  this  date, 
payable  at  First  National,  Lyons.  Discount,  8.43;  coll.,  2.00;  oxch.,  2.75.  Sent  to  Wayne 
County  National. 

For  J.  A.  Bush,  Philip  Warner's  note  for  500.00,  indorsed  by  Jolin  Rice,  at  30  days 
from  this  date,  payable  at  Union  Bank,  City.  Proceeds  paid  in  cash.  Discount,  2.75. 
(Write  "Cash"  after  Bush's  nmne  hi  the  "For  Whom  Discounted"  column  in  the  Discount 
Register,  so  that  it  will  he  posted  to  Cashier  Accoutit  instead  of  to  the  account  of  the  customer; 
see  checks  beloio.     See  second  paragraph  on  page  306.) 

For  Wyman  &  Fisher,  their  note,  indarsed  by  J.  IL  Price,  at  1  month  from  the  24th 
instant,  for  600.00,  payable  at  Farmers,  Canton.  Proceeds  paid  in  cash.  Discount,  2.!)0. 
Coll.  &  Exch.,  L50.     Sent  Farmers  Bank. 

For  Joiinson  Mfg.  Co.,  Darwin  &  Kent's  note  for  1500.00,  at  I  month  from  the  24th 
inst.,  payable  at  Norwich  National,  Norwich.  Discount,  7.25;  coll.  &  exch.,  2.88.  Sent  to 
Norwich  National. 

Drew  the  following  drafts  on  Chemical  Bank:  No.  1G05,  favor  Johnson  Mfg.  Co.,  998.75- 
exch.,  1.25.  No.  1606,  favor  D.  C.  Allison,  17.00;  exch.,  15c.  No.  1607,  favor  W.  F. 
Jameson,  244.50;  exch.,  50c.  No.  1608,  favor  L.  S.  Lansing,  116.00;  exch.,  25c.  No. 
1609,  favor  D.  J.  Slocum,  4993.75;  exch.,  6.24.  No.  1610,  favor  P.  J.  Dudley,  73.50;  exch., 
15c.  No.  1611,  favor  Meyer  &  Kauffman,  2496.87;  exch.,  3.12.  No.  1612,  favor  W.  B. 
Sage,  1000.00.  exch.,  1.25.  No.  1613,  favor  Lord  &  Bennett,  1598.00;  exch.,  2.00.  No. 
1614,  favor  D.  G.  Lamson's  Bank,  298.50;  exch.,  25c. 

Remitted  to  Chemical  Bank,  for  our  credit,  the  following  drafts  on  New  York,  received 
during  the  day:  No.  1042,  First  National,  Princeton,  on  Bowery  Bank,  192.82;  No.  213, 
Woodruff's,  Livonia,  on  Sixth  National,  1482.90;  No.  194,  Ward's  Bank,  Union,  on  Third 
National,  18.25;  No.  1516,  Exchange  National,  Dansville,  on  Bowery,  411.07;  No.  2104, 
Commercial,  Corning,  on  Metropolitan,  1242.16;  No.  13492,  First  National,  Waverly,  on 
Union  Trust  Co.,  27.90;  No.  826,  City  Bank,  HoUey,  on  Broadway,  146.83;  No.  1513,  Ex- 
change, Geneva,  on  Third  National,  875.00;  No.  482,  First  National,  Butler,  on  Chemical, 
218.  IL 

Received  the  following  deposits:  W.  F.  Jameson,  584.00;  D.  J.  Slocum,  1395.18;  Jas. 
Angle,  2873.00;  Thos.  H.  Wilson,  843.10;  Meyer  &  KaufPman,  4200.00;  Johnson  Mfg.  Co., 
5125.00;  Samuel  Wilder,  943.92;  Bingham,  Field  &  Ward,  550.00;  Benj.  Thomas  &  Son, 
1975.00;  Lord  &  Bennett,  2400.00. 

Opened  an  account  with  J.  IL  Wentworth  &  Co.,  and  received  a  dejiosit  of  1250.00. 

Paid  the  following  checks:  Johnson  Mfg.  Co.  1000.00,396.00,  2584.00,  3000.00;  T.  J. 
&  W.  E.  Ui)ton,  985.00,  146.32,  75.00,  843.90;  W.  F.  Jameson,  245.00,  2940.00,  133.25; 
D.  J.  Slocum,  5000.00;  Jas.  Angle,  3500.00,  200.00,  75.00,  186.90,  94.16;  Thos.  IL  Wilson, 
2735.50;  Meyer  &  Kauffman,  2500.00,  1500.00,  49.26;  Lord  &  Bennett,  85.00,  242.50, 
1600.00;  G.  H.  Perkins,  925.68,  Casliier,  497.25,  595.60. 

Collection  and  Exchange,  from  Teller's  Memorandum,  27.85. 

Rule,  foot,  and  post,  as  heretofore  instructed. 


220  UKKllJl-:     koCTIN'K    AM)     HUUK  K  Klil'ING. 

DECEMBER  30,   18—. 

Keceived  adTices  that  the  following  colk'otioiis  have  been  ])aid:  No.  861;  coll.  &  exch., 
50c.     No.  802;  coll.  &  excli.,  50c. 

Received  from  First  National  Bank  of  Belfast  a  draft.  No.  8U4G,  on  Nintii  National 
Bank,  for  i)roceeds  of  No.  S(i3,  less  50c.  for  collection.  {Credit  Coll.  d-  Exch.,  50c.,  the  dif- 
ference betiveen  our  charge  and  that  of  Belfast  Bank;  and  credit  Chas.  ./.  Burke,  H91.00;  see 
third  last  paragraph  on })age  20.'>.) 

No.  S()4;  coll.  &  exch.,  50c.      No.  Siio;  coll.  &  exch.,  50c. 

Credit  L.  W.  Perry,  in  Individual  Ledger,  under  "  Transient  Accounts,"  for  the  proceeds  of  collectioD 
No.  864. 

Collection  No.  832  has  also  been  paid.     (/.  L.) 

Discounts  Nos.  405,  491  and  493  have  been  paid.  {See  "Discount  Paper," page  206. 
At  this  time  credit  Bills  Discounted  only.) 

Received  the  following  described  paper,  from  the  banks  named,  for  collection.  All  of  the 
sight  drafts  were  paid  U])on  ]ircsentation. 

From  Tliird  National,  Newport,  Clark  &  Co.'s  sight  draft,  dated  -v'Sth,  .)ii  J.  II.  Rich, 
for  197.46. 

From  Exchange  National,  Hri.stol.  L.  .M.  DePuy's  sight  draft,  dated  29th,  on  M.  W. 
Cheney,  City,  for  388.19. 

From  Wayne  County  National,  J.  F.  Osgood'c  note  at  90  day.s  from  Oct.  4th,  indorsed 
by  W.  P.  Follett,  payable  at  Union  Bank,  City,  for  1385.00. 

From  Cascade  Bank,  Portage,  Norman  Seymour's  sight  draft,  dated  2Sth,  on  W.  F. 
Lawrence,  City,  for  843.90.  Remitted  draft  No.  1615,  on  Chemical  Bank,  for  the  jiroceeds, 
less  25^  for  collection. 

From  Traders  National,  Kingston,  Duncan  Jones'  sight  draft,  dated  28th  inst.,  on  11. 
P.  Randall,  for  240.83. 

The  following  paj)er,  received  on  dei)osit,  has  been  sent  to  the  banks  named  for  our 
credit:  D.  J.  Slocum's  sight  draft,  dated  29th,  on  Frank  W.  Brown,  Corning,  for  382.00; 
sent  Livingston's  Bank,  Corning.  (Charge  Livingston's  Bank,  in  Sundry  Banks  and 
Bankers  Account,  for  the  draft.) 

Maxwell  Day's  sight  draft,  dated  30th,  on  Wing  &  Walker,  Rockford,  for  181.40;  sent 
and  charged  to  First  National  Bank,  Rockford.  J.  IL  Wcutworth  &  Co.'s  sight  draft, 
dated  29lh,  on  Holmes  &  Co.,  Geneva,  for  23.82;  sent  Exchange  Bank,  Geneva.  {Charge 
Sundry  Banks  for  the  draft  sent  Exchange  Bank.) 

Wni.  Raymond's  sight  draft,  dated  30th,  on  H.  A.  ilillcr,  Lyons,  for  392.50;  sent  Wayne 
County  National.  H.  L.  Ma.son's  .sight  draft,  dated  30th,  on  ^M.  F.  Griffith.  Canton,  for 
49.80;  sent  Farmers. 

Discounted  the  following  jjaper:  For  H.  W.  Phillips,  his  note,  indorsed  by  IL  Chase  and 
Andrew  Springer,  for  1000.00,  at  30  d.iys  from  this  date,  jiayable  at  Wayne  County  National 
Lyons.     Di.scount,  5.50;  coll.,  1,00;  exch.,  1.25.     Proceeds  paid  in  cash.     {See  second  para- 
graph on  page  206. ) 

For  R.  L.  Mason,  Shelby  &  Co.'s  note,  at  30  days  from  the  28tli.  payable  at  Norwich 
National,  for  575.00.     Discount,  2.97;  coll.  bOf;  exch.,  72^'. 

P'or  Samuel  Wilder,  Jones  &  Hardy's  note,  at  30  davs  from  the  29lh,  jjayable  at  Union 
Bank,  City,  for  173.91.     Discount,  93^. 


OFFICE    ROUTINE    AND    liOOKKEEPINU.  221 

For  Morgan  &  Seelye,  H.  A.  Wood's  note,  indorsed  by  L.  M.  Lay,  at  ;30  days  from  this 
date,  payable  at  Exchange  Bank,  City,  for  1485.00.     Discount,  5.69.     Proceeds  paid  in  cash. 

Drew  the  following  drafts  on  Chemical  Bank:  No.  1015,  favor  Cascade  Bank,  Portage, 
for  843.65;  exch.,  25^^.  No.  1616,  favor  Chas.  J.  Burke,  for  9990.00;  exch.,  10.00.  No. 
1617,  favor  E.  L.  Mason,  for  2188.00;  exch.,  2.74.  No.  1618,  favor  K.  W.  Bush,  for  18.50; 
exch.,  15^.  No.  1619,  favor  A.  B.  Ward,  for  143.00;  exch.,  25r/.  No.  1020,  favor  Jerome 
Sackett,  for  82.19;  exch.,  15'/. 

Remitted  Chemical  Bank  the  following  drafts  and  checks  on  New  York,  received  during 
the  course  of  to-day's  business:  No.  8040,  First  National,  Belfast,  on  Ninth  National, 
1491.50;  No.  1143,  Second  National,  Westboro,  on  Bowery,  188.63;  No.  890,  Grangers 
Bank,  Jackson,  on  Metropolitan,  804.50;  No.  693,  Exchange  Bank,  Norwich,  on  Sixth 
National,  92.18;  No.  13483,  Manufacturers  Bank,  Middletown,  on  Ninth  National,  1143.75; 
No.  132,  F.  W.  Eichmond,  Goshen,  check  on  Chemical,  945.00. 

Received  the  following  deposits:  D.  J.  Slocum,  1294.11;  Wm.  Raymond,  3250.00;  Max- 
well Day,  3960.12;  L.  J.  Farnsworth,  3118.07;  Lord  &  Bennett,  0190.83;  T.  J.  &  W.  E. 
Upton,  4114.00;  J.  H.  Wentworth  &  Co.,  8073.95;  R.  L.  Mason,  5000.00. 

Paid  the  following  checks:  Chas.  J.  Burke,  10000.00,  546.50,  1850.00;  E.  L.  Mason, 
134.05  (note),  5000.00;  Jas.  Angle,  314.98,  1105.00.  12.3.10,  85.00;  Stillman  &  Moore, 
3500.00,  1492.50;  Johnson  Mfg.  Co.,  1122.50,  97.00,  2402.75;  Samuel  Wilder,  180.42, 
1729.03;  Bingham,  Field  &  Ward,  910.40,  2422.76;  Benjamin  Thomas  &  Son,  10000.00; 
Cashier,  992.35,  1479.31. 

Collection  and  Exchange,  from  Teller's  JMuuioraudum,  11.90. 

Add,  rule  and  post,  as  heretofore  directed-. 

DECEMBER   31,    18-. 

Received  advices  that  the  following  collections  have  been  jiuid:  No.  828;  coll.  &  exch., 
1.00.  No.  827;  coll.  &  exch.,  50'/.  No.  820;  coll.  &  exch.,  25f.  No.  834;  coll.  & 
exch.,  50'/. 

Received  from  Exchange  Bank,  Geneva,  their  draft  No.  910,  on  First  National  Bank, 
New  York,  for  proceeds  of  Collection  No.  880.  Amount  of  draft,  803.25.  collection,  25^'. 
{Credit  Dunn  S  Cole,  in  Individtial  Ledger,  S6S.0O;  and  credit  Collection  £  ExcUamje 
account,  25c.  Be  careful  to  make  the  proper  rliech  marh  in  tite  C.  R.  Charge  Chemical  Bank 
in  N.  Y.  D.  R.  for  Collection  Xo.  827.) 

Collection  No.  830,  payable  in  the  city,  has  been  paid.  (Credit  S.  H.  Lowe  in  I.  L., 
under  "  Transie)it  Accounts"  9 18. SO.) 

Received  from  WoodrufE's  Bank,  Livonia,  draft  No.  317,  on  Sixth  National,  for  proceeds 
of  Collection  No.  874,  less  charges  for  collection.  {Credit  Woodruff's  Bank  in  Simdry 
Banks  account  for  86.Jfi,  and  dehit  Collection  &  Exchange,  12c.) 

Collection  No.  859  has  been  returned  protested,  and  the  drawers.  Lord  &  Bennett,  to 
whom  it  was  credited,  have  given  us  their  check  for  its  face,  311.50,  and  the  cost  of  protest, 
1.35.  {Credit  the  hank  to  which  it  was  sent  for  the  total  amount,  212.85.  L.  &  BJ's  check 
for  the  same  amount  will  he  charged  up  with  others  at  the  close  of  the  day.  Mark  the  paper 
"Protested"  in  the  "Remarks"  column  in  the  C.  R.) 

Collection  No.  878  has  been  returned  dishonored.  {Mark  it  "Returned"  or  "Ret."  i?i 
the  "Remarks"  column  in  the  0.  R.     See  "Collection  Paper," page  205.) 


222  OFFICIC    ROUTINE    AND    BOOKKEEPING. 

No  entrj'  is  required.  Tlie  paper  whs  received  for  collection,  bence  it  is  only  necessary  to  return  i! 
to  the  drawers,  Ray  Bros.  It  is  not  cuslomary  to  make  a  charge  for  our  trouble  unless  the  collection  is 
made. 

When  a  sight  draft  is  left  for  collection,  it  is  customary  for  the  owner  to  request  the  bank  not  to  protest 
it  if  it  is  not  paid.  In  such  a  case  a  "  No  Protest"  is  attached  to  the  draft,  and  if  not  paid  the  draft  is 
returned  to  us  and  we  return  it  to  the  owner.  When  we  receive  a  draft  on  deposit,  we  protest  it  if  not 
paid,  to  hold  the  drawer. 

Discount  No.  492  1ms  been  paid. 

Discount  No.  497  not  liiiving  been  paid,  has  been  protested.     {Mark  "Pro/e.sfed"  in  I).  T.) 

Many  banks  have  an  account  with  Protested  Paper,  debiting  Protested  Paper  and  crediting  Bills  Dis- 
counted for  dishonored  Bills  Discounted;  but  the  custom  is  becoming  general  to  leave  all  discounted  paper 
in  the  Bills  Discounted  account  until  it  is  paid,  a  judgment  obtained,  or  it  is  found  to  be  worthless.  In 
case  judi;ment  is  obtained.  Judgment  Account  is  debited  f«r  the  entire  amount,  face  of  note,  interest  and 
costs,  and  Bills  Discounted  is  creiiiled  for  face  of  note,  and  Interest  for  the  interest  upon  it.  In  cjise  the 
judgment  proves  to  be  worthless,  Loss  and  Gain  is  debited  and  .Judgment  account  credited. 

Received  advice  that  Discount  No.  494  has  been  paid. 

Received  the  following  described  paper,  from  other  banks,  for  collection  and  credit,  all 
of  which  was  i)aid  upon  ])resentation:  From  AVayne  County  Xational,  W.  L.  Coot's  sight 
draft  on  Jlyrou  G.  Peek,  dated  30th,  for  9154.18,  and  Henry  J.  Lansing's  sight  draft  on 
Maxwell  Day,  dated  29th,  for  74.75.  Presented  the  latter  to  drawee,  who  has  accepted  it, 
payable  at  our  bank.     The  draft  was  i)laced  among  the  checks.     {See  list  of  checks  paid.) 

From  Norwich  National,  Jacob  Sterling's  sight  draft  on  Newman  &  Barry,  dated  29th, 
for  13.40. 

From  First  National.  Uockford,  Dwiglit  Weaver's  sight  draft  on  Coltoii  I'i  Manning, 
dated  30th,  for  97.80. 

From  First  National  Bank,  Jellerson,  Homer  Sprague's  sight  draft  on  Wm.  H.  Lyon, 
dated  29th  inst.,  for  114.93.  Collected,  and  remitted  our  draft  No.  1621,  on  Chemieal 
Bank,  for  1 14.78.     Collection,  15^.     (C.  R.     No  entry  at  this  time  in  N.  Y.  D.  R.) 

The  following  jjuper  received  on  deposit,  payable  abroad,  has  been  sent  to  the  banks 
named  for  collection:  Samuel  Wilder's  sight  draft,  dated  to-day,  on  W.  D.  Jones,  Newjjort, 
for  13G.92;  sent  to  Third  National,  Newport.  James  Angle's  sight  draft,  dated  to-day,  on 
1.  W.  Woolson,  Bristol,  for  23.44;  sent  E.xchange  National,  Bristol.  James  Angle's  sight 
draft,  dated  to-day,  on  Hurd  &  Thomas,  Canton,  for  61.27;  sent  Farmers  Bank,  Canton. 

Received  the  following  paper  for  collection:  From  T.  J.  &  W.  E.  Upton,  AVarren  Lee's 
note,  at  90  days  from  Oct.  12th,  for  500.00,  payable  at  Union  Bank,  City.  From  Johnson 
Mfg.  Co.,  n.  IJurt's  note,  at  30  days  from  Dec.  13th,  for  873.40,  i)ayable  at  Lansing's  Bank, 
Lyons;  sent  Wayne  County  National.  From  David  Gray,  his  sight  draft  on  Geo.  H.  New- 
ell, Cliester,  dated  this  day,  for  94.50;  sent  First  National,  Chester. 

Discounted  the  following  paper:  For  Henry  Sears,  Thomas  Brooks'  note,  indorsed  by 
Frank  Woodbury  &  Son,  at  30  daj's  from  date,  payable  at  LTnion  Bank,  City,  for  525.00. 
Discount,  2.89.     Paid  cash  for  proceeds. 

For  Stillman  &  Moore,  Fanning  &  Peck's  note,  at  20  days  from  dale,  payable  at  E.^ccliange 
Bank,  (;ity,  for  1500.00.     Discount,  5.75. 

For  Wm.  Uayinond,  Ellis  &  Hayden's  note,  at  30  days  from  tiie  27th  inst.,  payable  at 
First  National,  Lyons,  for  2650.00.  Discount,  12.81;  coll.,  2.00;  exch.,  3.31.  Sent  Wayne 
Co.  National. 


OFFICE     ROUTINE    AND    BOOKKEEPING. 


223 


Drew  the  following  drafts  on  Chemical  Bank:  No.  1621,  favor  l-'irst  National,  Jefferson, 
114.78;  exch.,  159«.  No.  1622,  favor  D.  J.  Slocum,  200.00;  exch.,  50^'.  No.  1633,  favor 
Johnson  Mfg.  Co.,  3500.00;  exch.,  4.38.     No.  1624,  favor  J.  II.  Wentworth  &  Co.,  100.00; 


exch., 


No.  1635,  favor  L.  J.  Farnsworth,  3000.00;  exch.,  3.75. 


Remitted  Chemical  Bank  the  following  drafts  on  New  York,  received  among  the  deposits: 
No.  1009,  Howard's  Bank,  Dundee,  on  Bowery,  446.94;  No.  464,  First  National,  Preston, 
on  Manufacturers  and  Traders,  133.39;  No.  104,  J.  11.  Clark's  Bank,  Woodville,  on  Croton, 
373.91;  No.  1264,  Second  National,  Plainville,  on  Ninth  National,  3500.00;  No.  749, 
Lamont  &  Thomas,  Morrisville,  on  Sixth  National,  383.46;  No.  6891,  First  National, 
Williamstown,  on  Chemical,  11.18;  No.  317,  Woodruff's  Bank,  Livonia,  on  Sixth  National, 
86.28;  No.  910,  Exchange  Bank,  Geneva,  on  First  National,  863.25. 

Received  the  following  deposits:  Samuel  Wilder,  1947.80;  D.  J.  Slocum,  375.00;  R.  L. 
Mason,  1200.00;  Stillman  &  Moore,  900.00;  Jas.  Angle,  1349.62;  Lord  &  Bennett,  4480.00; 
Bingham,  Field  &  Ward,  683.11;  J.  H.  Wentworth  &  Co.,  3963.43;  Benj.  Thomas  &  Son, 
1646.93. 

Paid  the  following  checks:  D.  J.  Slocum,  183.41,  943.86,  100.00,  200.00;  L.  J.  Farns- 
worth, 3000.00;  Wm.  Raymond,  163.50,  394.05,  873.13;  Lord  &  Bennett,  4000.00,  1263.44, 
212.85;  Johnson  Mfg.  Co.,  3500.00,  150.00,  150.00;  J.  H.  Wentworth,  1839.38,  163.90, 
100.00;  T.  J.  &  W.  E.  Upton,  113.73,  986.09,  350.00;  Bingham.  F.  &  W.,  3375.00;  Max- 
well Day  (draft),  74.75;  Cashier,  533.11. 

Collection  and  Exchange,  from  Teller's  Memorandum,  33.45. 

Remitted  National  Park  Bank,  currency,  25000.00. 

Paid  salaries  for  month  as  follows:  Cashier,  300.00;  Teller,  150.00;  Bookkeeper,  100.00; 
Assistant  Bookkeepers,  75.00,  50.00;  Messenger,  35.00;  Janitor,  35.00. 

Add,  rule  and  post,  as  heretofore  directed. 

You  may  now  take  a  trial  balance  of  the  General  Ledger  to  ascertain  whether  it  is  in 
balance,  and  also  a  proof  of  the  Individual  Ledger  to  ascertain  whether  the  difference  corre- 
sponds with  the  difference  between  the  sides  of  the  Deposits  account  iu  the  General  Ledger. 
If  correct,  your  results  will  agree  with  the  following: 


STATEMENT  OF  SECOND  NATIONAL  BANK, 

AT  CLOSE  OF   BUSINESS,   SATURDAY,    DECEMBER  31,    1 


Cash, 

67005 

29 

Capital  Stock, 

100000 

00 

United  States  Bonds, 

50000 

00 

C'ircidation, 

45000 

00 

Real  Estate, 

8000 

00 

Discount, 

3679 

82 

Furniture  and  Fixtures, 

2590 

00 

Collection  and  Exchange, 

1451 

17 

Expense, 

3330 

37 

Surplus  Fund, 

11750 

63 

Loans  &  Discounts  (Bills  Discounted), 

78141 

31 

Undivided  Frofits, 

2718 

42 

Redemption  Fund, 

2250 

00 

Due  Depositors, 

143740 

77 

Due  from  oilier  Banks  and  Bankers, 

982f>(! 

43 

Due  other  Banks  and  Bankers, 

14J 

59 

308483 

40 

308483 

40 

You  will  next  close  all  accounts  exhibiting  gains  and  losses  into  the  Loss  and  Gain 
account,  except  the  accounts  with  Real  Estate  and  Furniture  and  Fixtures,  which  are 
inventoried  at  cost.     The  net  gain  is  2810.63. 


224 


OFFICE    ROUTINE    AND    BOOKKEEPING. 


You  will  next  close  the  net  gain  into  Surplus  Fund  actoum,  Divident?  account  and 
Undivided  Profits  account,  by  a  Journal  entry,  instead  of  through  the  Loss  and  Gain 
account,  crediting  Surplus  Fund  account,  281.06  {see  last  paragraph  on  page  J94),  Dividend 
account,  2500.00  (which  will  amount  to  2A  per  cent,  npon  the  capital  stock),  and  Undivided 
Profits  account,  2fi.5G  (the  remainder  of  the  net  profit,  as  shown  by  the  balance  of  Loss 
and  Gain  account);  and  debiting  Loss  and  Gain  account  for  the  sum  of  these  items  or  the 
net  profit,  2810.62.  When  this  Journal  entry  is  posted  it  will  close  Loss  and  Gain  account 
and  transfer  the  gain  to  the  several  accounts  named.     Foot  and  rule  the  Journal  again. 

When  the  dividend  is  credited  to  the  stockliolders  or  paid  to  them  in  cash,  Dividend 
should  be  debited  in  the  Journal  fur  the  amount  thus  credited  or  j)aid. 

QUESTIONS. 

What  is  a  banker?  Of  what  does  the  business  of  banking  consist?  From  what  princi- 
pal source  do  the  profits  of  a  bank  arise?  Into  how  many  general  classes  are  banking  asso- 
ciations divided?  Wiiat  are  they?  What  is  a  State  bank?  A  National  bank?  A  private 
bank?  Under  what  law  are  National  banks  organized  and  governed?  Describe  some  of  the 
requirements  of  this  law.  IIow  are  State  banks  organized?  Do  State  banks  issue  circu- 
lating notes?  Explain.  What  are  the  duties  of  the  Board  of  Directors?  What  are  the 
officers  and  clerks  of  a  bank?  State  the  duties  of  each.  Name  the  books  used  in  a  bank? 
Describe  the  books  used  in  tliis  bank.  State  what  is  done  with  paper  received  for  collection. 
What  is  the  difference  between  Collection  Paper  and  Discount  Paper?  AVhat  is  done  with 
Discount  Paper  payable  abroad?  What  entries  are  made  when  the  proceeds  of  discount 
pai)or  are  paid  in  cash?  What  is  done  with  sight  paper  received  as  cash  and  payable  abroad? 
Keview  the  explanations  and  instruction  given  throughout  the  set. 


CLEARING   HOUSE   FORMS. 
(D) 
I^OGl?ester  (^\ear\qq  fiouse  proof,  c^y.  /s,  /^f-. 


RANKS. 

DCB 

BANKS 

BANKS 

DUE 

R.  0.  H. 

DB. 

CR. 

BASKS. 

1 

Conn       I; 

1631  42 

10273  18 

8641 

76 

1 

q 

CoimutixiuJ  Natiftnal  Itink. 

49M0I 

1.W17  90 

102T3 

SR 

2 

3 

Flour  Citv  Natioiiiil  Hank. 

703!o.-; 

1421717 

iail4 

12 

3 

4 

Gennaii-AnnTiwin  Biuik, 

1474130 

2a>52 

87 

WIl 

31 

4 

fi 

Merchants  IJank, 

nr>s5oo 

24497 

18 

6912 

18 

,1 

6 

Ilaiik  (if  Monrof, 

U38.1;D0 

18515 

"ill 

9130 

(Ml 

6 

7 

Trust  and  Safe  Deposit  Company, 

834« 

2.") 

20121  '50 

11S75 

25 

K 

Trailers  National  Bank, 

8101 

•is 

isiiir, 

!« 

lift  14 

thS 

,s 

» 

L'nion  Hank, 

2!I3 

14 

atrii 

12 

ajotjo 

98 

9 

10 

Mowers  Hank, 

in.ioo 

m 

2VKVI 

.Ml 

l.WiO 

.'•lO 

111 

11 

Koehester  Savlnire  Hank, 

1 

lavxi 

00 

11967 

20 

1467  20 

11 

y> 

Monroe  t'oniuv  Saving's  Hjtnk, 

16753  10 

284'i2 

M 

11710 

40 

1 

12 

13 

Meclianles  Savings  Hank, 

11718 

40 

13718 

49 

2000  09 

13 

4067128 

307692 

76 

207692 

76 

4067138 

] 

1 

(A) 
EXCHANGE  SLIP 

No.    1. 

Fi-oni  J\'b.  4-' 

(|(?rmai}-pm(^ric:a9  Bai}!^. 


40 

Si 

1147 

82 

OFi 


!VH    ANL     i. 


^?5 


CLEARIXG    HdU^ES. 


A.  Clearins  House  is  S"!-  iiss-xia:::::  ::  l.i-ks  called  inio  esisience  bj  the  necessiir  of 
the  times,  to  facilitaie  daily  settlements  between  hanks.     Tie  aggregate  amoimt  of  eschang^ 


represents  the 
claims  bj  the 
Atlarsetr, 


•Clearins,"  sars  Ooyd,  *"  is  the  seulemeEt  of  : 


ri  a  cerii 


7  of  banks  associate  tbemselTes  togeiier  under  arucles 
n::-:    -"  =-  ;  -■"       -  '       -..i.i.itiide  and  Tolume  of  trade  maj  demand.     OScieis 

;-.:.-  "     -■  -iwed  to  conduct  tie  afiairs  of  tbeasswoaaliom.     The  offi- 

cers are  a  PrtSideai.  \  ic^Presjueiju  Manager,  and  Committee  of  ManaiTrmeni-  sometimes 
called  the  Clearing  House  Committee,  a  Commirtee  on  C-onference,  a  Xominaiing  Com- 
mittee, a  Committee  on  Admission  and  an  Arbitration  Commitiee.  Tbe  Manager,  under 
;  •  -  :'  the  Managing  Committee,  has  fall  ebai^  of  the  business  at  tbe  Clearing  House 
s,  ;..;  -^  ibe  manner  of  condncring  its  business  Ijransactions  is  coneemeil.  He  has  luH 
charge  of  the  clerical  force  employed  and  of  tbe  settling  clerks  and  messengers  from  tie 
bank-  iring  House. 

T,  -.: '.-,  •:  __;enl  to  a|ipreciate  the  use  of  the  Jllastratei  :.:_-.  :heT  will  be  ex- 
plained in  their  order  commencing  at  "A."     (5ftf  paof  -~4-) 

In  the  daily  routine  of  banking  work  tbe  teller  elassiSes  his  exchanges  aoicording  to  the 
bank  at  wbich  tbey  are  made  payable.     This  is  usually  done  by  assorting  them  in  pigeon- 

Cleasixg  HorsE  Fosms, 


Jio.  4.  (B1 


Bala^ee  Tie^et. 


GER' 
SetOimg  C. 


50.'                       B^NKS- 

DEBZXS. 

BASKS 

CEKDrr. 

so. 

llv                ,                   --■ 

6  Fi. 

7  T-                -                 -  ^ 

S    T-          . 

r  Savings  Eani. 
■^  Jvaviags  Bank, 

1 
i 

1 

4s:i.  I, 

1 

3 

4 

a  a 

fee  ic 

a"  5" 

?  5 

a  ? 

■'53  Q, 

3  S" 


? 
R 


6 


Q 


•  fm;- 

'                   ~'         i^ 

-s^ 

^ 

3 

S    1 

R» 

M 

~^ 

r    ^ 

1          ~     -~'- 

3 

^    ^ 

? 

a     R. 

■r^ 

5^    5 

S 

?^    S. 

^ 

S  S 

;< 

:s    £ 

5t;i 

^ 

R-  -J 

H 

a      ^ 

■>] 

s- 

Tf 

^ 

a 

•a^-a^ 

-is 

s 

a  i 

^ 

.^ 

S 

;■ 

■■?l^ 

^  ? 

1 

J^  i^ 

4  Qi 

<B 

•Si 

n 

OS 

■is   te. 

S 

— 

^.^     !S 

I  r 

!,• 

Si     ^ 

=* 

>     ^ 

J* 

a 


-§3 
I" 


*i 


<pi  S 


c\ 


^  't^  ".i 


226  OFFICE    ROUTINE    AND    BOOKKEEPING. 

holes,  and  at  the  end  of  the  day's  Ijusiuess  Excliangu  Slips  are  made  out  against  the  different 
banks  for  the  amount  of  exchangeable  paper  held  for  collection  against  them.  In  the  illus- 
trated forms  the  Exchange  Slij)  "A"  shows  five  diflferent  pieces  of  paper,  aggregating 
1147.82,  which  is  the  amount  of  exchaniies  carried  by  the  German-American  Bank  to  the 
Clearing  House  against  No.  1,  the  Central  Bank.  There  are  different  sli])s  for  each  bank, 
and  when  ready  for  clearing  the  amount  of  exchange  against  each  bank  is  placed  in  a  large 
envelope  with  the  Exchange  Slip  on  the  outside.  When  these  slips  are  made  out  at  the 
bank,  an  Exchange  Slij)  is  made  out  also  for  such  otlier  banks  as  collections  are  held 
against,  and  the  aggregate  of  each  is  entered  on  another  blank  called  the  Settling  Clerk's 
Statement  (see  illustrated  form  "B").  In  this  is  entered  the  total  debit  against  each 
bank.  It  will  be  seen  by  consulting  the  form  (B)  that  the  Settling  Clerk  of  the  German- 
American  Bank  took  to  the  Clearing  House  on  Aug.  15,  collections  aggregating  20552.87,  as 
shown  by  the  column  headed  "Total  Debits."  At  the  time  of  his  arriving  there  no  entries 
have  been  made  in  the  column  headed  "  Banks  Credit."  This  is  to  be  used  during  the  in- 
terval between  the  opening  and  closing  of  the  Clearing  House. 

Just  before  the  hour  of  opening  each  settling  clerk  delivers  to  the  other  clerks  their 
envelopes  of  exchanges  which  he  has  against  them. 

A  credit  ticket  is  made  out  by  the  settling  clerk  and  handed  to  the  manager,  instructing 
him  to  credit  the  German-American  Bank  with  exchanges  aggregating  20552.87.  The  man- 
ager at  once  enters  it  in  a  blank  called  "  Clearing-IIouse  Proof"  {see  illustration  D).  When 
all  are  entered  the  manager  foots  the  column  headed  "Bank  Cr.,"  which  shows  the  total 
clearing  to  be  made. 

At  a  given  hour,  u.siially  at  10  o'clock  a.  m.,  the  signal  is  given  to  clear  and  the  clerks 
deliver  their  exchanges,  if  not  already  done.  The  settling  clerks  now  enter  in  the  credit 
column  of  the  Settling  Clerk's  Statement  (B),  the  total  credit  opposite  each  bank  for  the 
amount  left  against  his  bank. 

The  settling  clerk  of  the  Gernum-American  Bank  foots  the  credit  column  of  his  state- 
ment and  finds  that  there  is  an  aggregate  of  14741.50  against  his  bank,  and  that  there  will 
be  due  the  German-American  Bank  5811.31.  He  now  fills  out  a  Balance  Ticket  (C),  show- 
ing debits,  20552.87;  credits,  14731. 50;  balance,  5811.31,  and  passes  it  up  to  the  manager. 
{See  illustration  C.) 

The  manager  fills  out  the  Clearing-House  Proof  and  finding  that  the  columns  headed 
"Dr.  Banks"  and  "  Cr.  Banks"  foot  equally,  and  also  the  columns  headed  "Due  Clearing 
House"  and  "  Due  Banks"  foot  e(|ually  he  announces  the  result  "  correct." 

This  completes  the  exchanges  for  the  day,  and  the  debit  banks  have  one  hour  in  which 
to  pay  their  balance  to  the  manager,  and  at  1:30  the  credit  banks  receive  from  the  manager 
their  balances,  which  are  paid  either  in  checks  or  Clearing  House  certificates.  Thus  millions 
of  dollars  of  settlements  are  made  and  balances  are  paid  without  moving  specie  or  trans- 
ferring a  dollar  in  legal  tender.  The  checks  are  deposited  for  clearing  the  next  day  and  the 
certificates  are  nsed  to  adjust  subse(]uent  balances. 

In  Cincinnati  the  system  was  introduced  and  since  has  obtained  in  several  of  the  Western 
cities  to  settle  at  once  with  the  credit  banks  by  drawing  manager's  checks  upon  the  debit 
banks.  By  looking  at  "Clearing-House  Proof"  (D)  it  will  be  seen  that  should  the  manager 
give  the  German-American  Bank  a  check  for  the  balance  due  of  5811.31  uiwn  No.  12,  the 
Monroe  County  Savings  Bank  (whose  debit  balance  is  16752.10),  there  would  be  a  balance 
due  from  No.  12  of  10940.70. 


APPENDIX. 

SINGLE    ENTRY    BOOKKEEPING. 
Purely  Single  Entry  is  a  system  of  bookkeeping  ■nliicli  contemplates  such  a  record,  or 

the  filing  of  sucli  documents  for  reference  only,  as  will  enable  the  proprietor  to  determino  at 
any  time  those  resources  and  liabilities  of  his  business  which  cannot  be  found  by  taking  an 
inventory. 

Personal  Accounts.  For  this  purpose  the  practice  is  to  debit  or  credit  and  post  per- 
sonal accounts  only.  Hence,  the  distinguishing  feature  of  purely  single  entry  bookkeeping 
is  that  only  personal  accounts  are  kept. 

No  Purely  Single  Entry  in  Business.  Purely  single  entry  books  are  seldom  kept  in 
business,  for  the  reason  that  almost  every  business  man  desires  to  keej")  an  account  of  his 
cash,  his  expenses  and  the  goods  in  which  he  is  dealing.  Quite  frequently  other  accounts 
than  those  mentioned  are  kept ;  but  when  such  is  the  case  it  ceases  to  be  single  entry,  as  in 
purely  single  entry  only  personal  accounts  are  kejjt.  To  the  extent  that  single  entry  books 
contain  other  than  personal  accounts  they  approach  double  entry,  but  they  will  still  lack 
many  of  the  valuable  features  of  the  double  entry  method. 

Rules  for  Debiting  and  Crediting.  The  rules  for  debiting  and  crediting  personal 
accounts  in  single  entry  are  exactly  the  same  as  in  double  entry.  {See  niles  1  and  2  on  page 
1,  rules  5,  6,  7,  8,  9,  and  10  on  jxuje  10  and  rules  15  and  16  on  page  18.)  The  posting  is  also 
done  in  the  same  manner  as  in  double  entry. 

Compared  with  Double  Entry.  In  double  entry  bookkeeping,  other  accounts  than 
those  with  persons  are  kept,  and  an  entry  involving  equal  debits  and  credits  is  made  in  the 
Journal  or  some  other  posting  book,  for  every  business  transaction.  When  such  entry  has 
been  posted  equal  amounts  will  have  been  entered  on  both  sides  of  the  Ledger,  hence,  the 
name  double  entry.  In  jjurely  single  entry  bookkeeping  only  personal  accounts  are  kept,  and 
an  entry,  usually  involving  either  a  debit  or  a  credit  and  sometimes  both,  is  made  in  the 
Journal  or  other  book  of  original  entry  only  when  a  personal  account  has  been  affected. 
When  such  entry  has  been  posted  a  single  amount  will  have  been  entered  on  but  one  side  of 
the  Ledger,  lience,  the  name  single  entry. 

No  Trial  Balance.  A  single  entry  ledger,  then,  differs  from  a  double  entry  ledger  in 
that  it  contains  only  personal  accounts.  Since  but  one  amount  is  posted  for  each  entry  in 
single  entry,  it  will  be  apparent  that  the  totals  of  the  ledger  debit  and  credit  balances  will 
not  be  equal,  and  that  no  trial  balance  of  a  single  entry  ledger  can  be  taken. 

No  Balance  Sheet.  Since  no  accounts  showing  losses  and  gains  are  kept  in  single  entry, 
it  follows  that  an  itemized  statement  exhibiting  the  sources  of  the  losses  and  gains  of  the 
business  cannot  be  obtained.  The  net  gain  or  net  loss  of  the  business  can  be  deterriiined, 
however,  and  as  accurately  as  in  double  entry  by  taking  an  inventory  of  the  resources  and 
liabilities  as  explained  and  illustrated  on  pages  3-3  and  34,  and  in  the  following  paragraph. 

Inventory  of  Resources  and  Liabilities.  It  has  been  explained  that  the  resources 
of  a  business  consist  of  the  property  belonging  to  the  business  and  the  debts  owing  to  it ;  the 
liabilities  consist  of  the  debts  owing  by  the  business.  Since  the  property  belonging  to  the 
business  can  be  ascertained  at  any  time  by  taking  an  inventory,  it  follows  that  the  only 
records  which  it  is  absolutely  necessary  to  make  in  order  to  be  able  to  determine  the  results 
of  the  business,  are  of  such  transactions  as  affect  personal  accounts,  and  of  such  as  cause  the 
issuing  of  Bills  Payable.     The  latter  record  is  in  the  form  of  a  memorandum. 

227 


228 


OFFICE    ROUTINE    AND     BOOKKEEPING. 


Books  used  in  Single  Entry.  In  purely  single  entry  all  the  books  necessary  are  the 
Day  Book-Juiiriial  and  the  Ledger.  Very  often  the  Ledger  is  the  only  book  of  record  and  is 
then  known  as  an  Original  Entry  Ledger.  A  convenient  form  of  original  entry  ledger  is  the 
ordinary  journal  ruling  and  is  illustrated  on  page  03.  {Sec  illustration  of  Customers'  Ledger 
page  93.)  In  business  when  it  is  desired  to  make  records  other  than  those  affecting  personal 
accounts,  any  of  the  books  used  in  double  entry  may  be  employed  to  advantage,  but  when 
that  is  done  it  approaches  double  entry.  The  forms  of  the  books  used  in  single  entry  need 
not  differ  from  those  used  in  double  entry ;  in  fact  they  are  generally  the  same. 

The  Day  Ilook-Journal.  The  Day  Book-Journal  contains  debits  and  credits  to  persons 
arising  from  transactions  with  such  persons.  Such  debits  and  credits  should  be  accompanied 
by  sufficiently  clear  and  complete  exjilanations  of  the  transactions  giving  rise  to  the  entries 
as  to  enable  any  one,  whether  familiar  with  the  circumstances  or  not,  to  readily  understand 
all  important  facts  regarding  them.     [See  form  of  Singh  Entry  Day  Book-Journal  below.) 

Single  Entry  Day  Book-Journal. 

March  1,  ISO-. 


L.  F. 

Wm.  W.Mul, 

Comineuced  business,  investing  cash. 

Cr. 

5000 

3 

J.  W.  Winter, 
Bo't  on  acet, 
400  bii.  Oats, 
000   "    Corn, 

Or. 

40? 

100 
•240 

340 

S.  W.  Snow, 
Bo't  on  acct., 
400  brls.  Flour, 

Cr. 

S.r,o 

1400 

1400 

4 
Jas.  Spriug. 

Sold  on  accl., 
500  bu.  Corn, 

Dr. 
50(S 

2.50 

250 

.J.  W.  Winter, 

Paid  him  on  acct. 

Dr. 

250 

8 
M.  Sumner, 

Sold  on  acct., 
400  brls.  Flour, 

Dr. 

4.00 

IDIill 

1000 

Jas.  Sprinjr. 

Itec'd  $200  on  acct. 

Cr. 

200 

10 
M.  Sumner, 

Itec'd  his  note  in  full  of  acct. 

Cr. 

1000 

13 

S.  W.  Snow, 

Gave  him  my  note  on  acct. 

Dr. 

1000 

15 
Wm.  Wood, 

Drexv  for  private  use. 

Dr. 

75 

OFFICE    ROUTINE    AND    BOOKKEEPING.  229 

Single  Entry  and  Donble  Entry  Journal  Compared.  Compare  the  single  entry 
day  book-journal  illustrated  on  the  opposite  ])age  with  tlie  model  double  entry  journal  on 
pages  3  and  3.  Observe  that  the  single  entry  form  does  not  contain  the  second,  third  and 
fourth  entries  as  given  in  the  model;  the  reason  being  that  no  personal  accounts  are  affected 
by  transactions  of  that  kind,  consequently  no  record  is  required  in  single  entry. 

Make  a  neat  copy  of  the  single  entry  journal  on  a  sheet  of  journal  jsaper,  observing  every 
detail  as  given.  In  making  an  entry  in  a  single  entry  jmirnal,  first  write  the  name  of  tlie 
personal  account  to  be  debited  or  credited  together  with  the  abbreviation  Dr.  or  Cr.,  begin- 
ning at  the  L.  F.  column  and  place  the  amount  in  the  second  money  column.  On  the  line 
below  beginning  about  one  inch  to  the  right,  write  the  explanation  of  the  transaction  and 
place  the  items  in  the  first  money  column. 

Posting.  Open  accounts  with  the  proper  persons  on  a  sheet  of  ledger  paper  and  post 
the  debits  and  credits  of  your  journal.  Check  over  your  jjosting  in  pencil.  It  will  be  im- 
posible  to  take  a  trial  balance  to  test  the  accuracy  of  the  posting.     Why  ? 

Business  Results.  Counting  the  cash  on  hand,  Mr.  Wood  finds  that  he  has  $4676.50; 
the  merchandise  on  hand  consists  of  the  articles  enumerated  in  the  Merchandise  Inventory 
illustrated  on  page  33;  there  is  a  note  of  SICOO  on  hand  and  a  note  outstanding  for  §1000. 
These  are  all  the  resources  and  liabilities  that  can  be  ascertained  by  taking  an  inventory; 
the  remainder  of  the  resources  and  liabilities  consist  of  amounts  owing  from  persons  and 
amounts  owing  to  persons  and  are  to  be  ascertained  from  the  books. 

Make  an  Inventory  of  the  Resources  and  Liabilities  of  Wm.  Wood's  business  using  the 
inventories  as  given  above  and  the  balances  of  the  ledger  accounts.  Your  Inventory  of  Re- 
Bonrces  and  Liabilities  should  be  identical  with  the  illusti-ation  on  page  34.  By  subtracting 
Wm.  AVood's  capital  as  shown  by  his  account  in  the  Ledger  from  his  present  capital,  we 
have  the  gain.  As  there  are  no  accounts  kept  with  property,  it  will  be  impossible  to  ascer- 
tain the  sources  of  the  losses  and  gains,  which  is  usually  done  in  double  entry  by  making  a 
balance  sheet. 

Changing  to  Double  Entry.  You  will  now  open  accounts  with  the  property  on  hand — 
Cash,  Merchandise,  Bills  Receivable  and  Bills  Payable  in  the  ledger  and  post  the  balances  of 
these  accounts  as  exhibited  by  the  Inventory  of  Resources  and  Liabilities.  Carry  the  net 
gain  to  Mr.  Wood's  account.  Do  not  forget  to  postmark  in  the  folio  column  of  the  Inventory 
of  Resources  and  Liabilities.  Your  ledger  should  now  be  in  balance.  To  test  the  accuracy 
of  your  work  take  a  trial  balance.  Your  books  are  now  in  condition  to  be  kept  by  double 
entry. 

Present  your  work  for  inspection  and  approval. 

WM.   BURKE'S  BUSINESS. 

To  the  Student.  You  will  now  assume  that  you  are  engaged  during  the  day  and  that 
you  contract  with  Wm.  Burke,  a  dry  goods  dealer,  to  keep  his  books  by  single  entry,  after 
business  hours.  Mr.  Burke  will  make  a  complete  record  in  a  Day  Book  of  all  the  business 
he  transacts  during  each  day  from  which  you  will  write  up  the  books  each  evening.  To 
begin  with  Mr.  Burke  wishes  you  to  keep  ajmrehj  single  entry  get  of  books.  Remember, 
then,  to  make  no  entry  of  a  transaction  in  the  Journal  unless  a  personal  account  is  affected 
by  such  transaction.  The  following  is  a  copy  of  Wm.  Burke's  Day  Book  from  which  you 
will  write  up  a  Single  Entry  Day  Book-Journal. 


230 


OFFICE    ROUTINE    AND    H(  loK  K  KEPING. 
May  20,  189-. 


1,  Wm.  Burke,  commence  the  dry  goods  business 
with  llie  following  resources: 

Cash  in  Union  Bank, 

Store  and  fixtures  at  403  Jefferson  St., 

Paid  for  Office  Furniture.  Books,  Stationery,  etc., 

Paid  for  postage, 

Bo't  an  invoice  of  dry  goods  for  cash, 

21 
Bo't  an  invoice  of  dry  goods  for  casn. 

Sold  for  cash, 

10  pes.,  583  yds.,  American  Prints,                   6i<^ 

Rec'd  an  invoice  of  dry  goods  from  Dunn  &  Son  on  acct . , 

22 
Sold  to  M.  Casper  on  acct., 

5  pes.,  212+  yds.,  Hamilton  Stripe.                     91(> 

3  "      125      "      Piedmont  C.  Drills,                  If 

Bo't  invoice  of  dry  goods  from  A.  P.  Fenn  &  Co.  on  acct.. 

Sold  to  M.  Casper  on  aoct., 

4  pes.,  1.")0y<ls.,  York  Denims,    .                      12i^ 
3     "      102    "      Koyal  S.  Flannel,                      2^ 

Kec'd  on  acct.  from  M.  Casper, 

Paid  Dunn  A  Son  on  acct., 

Rec'dan  invoiceof  drj'goodsonacct.  from  Becker  &  Son, 

24 
Uec'd  M.  Casper's  note  to  apply  on  acct., 

25 

Sold  to  Dodson  &  Payne  on  acct. , 

20  pes.,  795i  yds," Manchester  Gingham,           't^(f 

Bo't  an  invoice  of  dry  goods  from  Root,  Alills  <.t  Co., 
on  acct., 

Gave  Root,  Mills  &  Co.  my  SOila.  note. 

Sold  to  Dodson  &  Payne  on  acct., 

20  pes.,  im  yds.,  Vermont  C.  Cheviot,          121«' 

26 
Rec'd  on  acct.  from  Dodson  &  Payne, 

;;( inn 
.■)'JliU 

i 

124 

o 

422 

31  s 

i;i2 
871 

20 

200 

112 

.',0 

118 
100 

.10 
60 

25 

27 
50 

40 
29 

OFFICE    ROUTINE    AND    BOOKKEEPING. 
May  26,  189-. 


231 


Gave  Becker  &  Son  on  acct., 

Sold  T.  A.  Cody  &  Co.  on  acct., 

20  pes.,  S49i  yds.,  Ilp.milton  Stripe, 

Rec'd  on  acct.  from  T.  A.  Cody  &  Co., 


n^ 


Gave  Becker  &  Son  my  note  at  30  days  to   balance 
acct., 

Bo't  an  invoice  of  dry  goods  from  Jos.  Frey,  Jr.,  on 
acct. , 

28 
Gave  Jos.  Prey,  Jr.,  on  account, 

Rec'd  an  invoice  of  dry  goods  from  Minor,  Patrick 
Co.  on  account, 

29 
Sold  to  J.  F.  Brown  on  acct., 

40  pes.,  1209J  yds.,  Kellog  Flannel,  30f 

Drew  for  private  use, 

Sold  to  T.  A.  Cody  &  Co.  on  acct., 

50  pes.,  3914i  yds.,  Birmingham  Ticking,         7i{* 

Rec'd  T.  A.  Cody  &  Co.'s  30-da.  note  on  acct., 

31 
Cash  sales  to  date  amount  to 

Paid  drayage  bill  to  date, 

Sold  to  J.  F.  Brown  on  acct., 

40  pes.,  2287i  yds.,  American  Prints,  &\if 


I  find  that  I  have  the  following  property  on  hand; 

Cash, 

Bills  Receivable, 

Real  Estate, 

Mdse.  per  Inventory  Book, 

Office  Furniture, 

My  notes  outstanding  amount  to 


50 
25 

161 

50 

379 

30 

100 

782 
7 


2760 

l.JO 
52(11) 
1767 

100 

137 


40 


43 


64 
80 


39 


46 


40 


Present  vour  Day  Book-.Jouriial  for  aj)proval. 

Posting.  In  opening  accounts  in  the  Ledger,  place  five  accounts  on  a  page,  beginning 
on  page  37.     Post  and  clieck  over  the  posting. 

Business  Results.  Prepare  an  Inventory  of  Resources  and  Liabilities,  using  the  inven- 
tories given  above  and  the  bahmces  of  the  accounts  on  your  Ledger. 

Have  your  inventory  approved,  after  which  make  a  neat  transcript  of  same  on  page  14 
of  the  Cash  Book.  Carry  the  Net  Gain  or  Net  Loss  to  the  proiirietor's  account,  and  bring 
the  balance  below  the  ruling  so  as  to  show  his  Present  Capital  at  a  glance. 


232 


OFFICE    ROUTINE   AND    BOOKKEEPING. 
Single  Entry  Cash  Book. 


189-. 

I.  r. 

Jan. 

1 

3 

8 

16 

C.  W.  Hammond,  invested, 

Cash  sale. 

Cash  sale, 
A.  P.  Biitson,                on  accU, 
Frev  &  Thomas,             " 

5000 
324 
766 

aoo 

600 

20 

H.  B.  Pliillips&Co.,     ••      " 

150 

7040 

7040 

• 

Balance  on  hand. 

7040 

JaD. 

31 

8797 

-T) 

Continuation  of  Wm.  Hlrke's  Business. 
Cash  Book.  You  will  now  discontinue  keeping  a  purely  single  entry  set  of  books,  aa 
Mr.  Burke  desires  you  to  make  a  systematic  record  of  the  casli  received  and  paid  out,  so 
that  the  cash  can  be  proven  each  day  if  he  so  desires  it.  Since  Cash  is  a  property  account, 
and  since  only  personal  accounts  are  kept  in  purely  single  entry  bookkeeping,  it  is  apparent 
that  it  ceases  to  be  single  entry  whenever  an  account  with  property  of  any  kind  is  kept. 
Compare  the  single  entry  form  of  Cash  Book  given  on  pages  :i32  and  2.33  with  the  double 
entry  form  illustrated  on  pages  42  and  43.  Note  that  the  items  (personal  accounts)  to  be 
posted  in  single  entry  are  made  prominent  by  short  extending  the  items  (property  and 
expense  accounts)  that  are  not  to  be  posted. 

Wm.  Burke's  Day  Book  (continued). 
June  1,  189-. 


Sold  to  L.  B.  Jloffet  on  acct., 

50  pes.,  2123  yds.,  Bombay  Gingham,               8if? 

Paid  gas  bill  for  month  of  May, 

I 

27 

Cash  sales  for  the  day  amount  to. 

126 

40 

2 
Rec'd  from  L.  B.  Sloffet  on  acct., 

75 

M.  Casper  paid  me  in  full  of  acct. 

Paid  for  postage, 

2 

Paid  A.  P.  Fenn  &  Co.  on  acct., 

500 

Bo't  invoice  of  dry  goods  from  King,  Long  &  Co.  on 
acct.. 

213 

37 

Cash  sales  for  the  day, 

131 

40 

3 

Sold  to  W.  B.  Hicks  on  ncct., 

80  pes.,  3281  yds.,  Piedmont  C.  Drills,               7(} 

Bo't  invoice  of  Mdse.  from  W.  W.  Rorer&Co.  on  acct.. 

147 

29 

OFFICE    ROUTINE    AND    BOOKKEEPING. 


233 


Single  Entry  Cash  Book. 


189-. 

I..F. 

Jan. 

1 

Cash  purchase. 
Cash  purchase. 
Cash  purchase, 

900 
720 
500 

2 

Office  books, 
Rent, 

17 
90 

75 

9 

Redfield  &  Son,        on  acct.. 

300 

17 

H.  Knefely  &  Son,    "      " 

250 

22 

A.  Paul,  Jr.,              "      " 

300 

29 

C.  W.  Hammond,  private  use. 

100 

31 

Student's  salary. 

50 

Drayage  bill. 

15 

824S 

75 

3242 

75 

Balance  on  hand* 

*  Italics  indicate  red  Ink. 

S797 

S5 

7040 

00 

June  3,  189-. 


Rec'd  from  W.  B.  Hicks  on  acct., 

Paid  for  washing  windows. 

Paid  Slinor,  Patrick  Co.  on  acct.. 

Cash  sales  for  the  day, 

4 
Bo't  mdse.  on  acct.  from  Minor,  Patrick  Co., 

Sold  on  acct.  to  W.  B.  Hicks, 

50  pes.,  2253  yds.,  Passaic  Prints,  4fi# 

Uec'd  from  J.  F.  Brown  on  acct., 

Paid  A.  P.  Fenn  &  Co.  in  full. 

Cash  sales  for  the  day, 

6 
Rec'd  of  Dodson  &  Payne  their  note  to  balance  acct., 

Gave  King,  Long  &  Co.  my  note  to  apply  on  acct., 

Sold  on  acct.  to  L.  B.  Moffet, 

100  pes.,  4522  yds.,  Washington  Cambric,        4}}* 

Cash  sales  for  the  day, 

7 
Rec'd  of  W.  B.  Hicks  his  note  to  apply  on  acct., 

Paid  Dunn  &  Sou  in  full, 

Paid  for  drayage. 

Drew  a  draft  on  J.  F.  Brown  favor  of  W.  W.  Rorer  & 
Co.  for  the  amount  I  owe  W.  W.  Rorer  &  Co.,* 

I  desire  to  have  my  books  kept  by  double  entry, 
ascertain  the  net  gain  or  loss,  using  the  following  in- 
ventories, then  proceed  to  change  to  double  entry. 

Real  Estate, 
Mdse.  on  hand, 
IJills  Rec.  on  hand. 
Bills  Pay.  outstanding. 
Furniture  &  Fixtures, 


5200 

1392 

339 

2G3 

100 


100 

100 
117 
248 

200 

207 
125 

193 
150 


75 

48 
90 


82 


40 


75 


•  When  two  personal  accounts  are  affected  by  a  transaction,  one  a  debit  and  the  other  a  credit,  make  the  journal 
entry  as  follows  in  single  entry  : 

W.  W.  Rorer  &  Co.,  Dr.  100 

J.  F.  Brown,  Cr.  100 


234  OFKICli    KtJUTINE    AND    BOOKKEEPING. 

Pri'scm  your  Journal  and  Cash  Book  for  ajijiroval. 

Posting.  Post  tliG  entries  from  the  Journal,  then  balance  and  rule  the  Cash  Book  and 
post  all  items  affecting  personal  accounts.     Check  over  the  posting. 

IJusiness  Results,  IMakc  an  Inventory  of  the  Resources  and  Liabilities  of  the  busi- 
ness, using  tlie  balances  of  tlic  Lodger  accounts  and  the  amounts  of  the  inventories  given 
by  Mr.  Burke.  The  balance  of  cash  you  will  ascertain  from  the  Cash  Book  The  difference 
between  the  resources  and  liabilities  is  Wm.  Burke's  present  capital.  Subtract  his  capital, 
as  shown  by  liis  account  in  the  Ledger,  and  you  havo  the  Gain.  Present  your  Inventory  of 
Resources  and  Liabilities  for  api)roval,  after  which  make  a  neat  copy  of  same  on  page  15  of 
the  Cash  Book. 

Changiiii;  to  Double  Entry.  Open  accounts  in  the  Ledger  with  Merchandise,  Real 
Estate,  Furniture  &  rixlurcs,  Bills  Receivable  and  Bills  Payable,  Post  the  balances  of  these 
accounts  as  cxliibitcd  by  tlio  Inventory  of  Resources  and  Liabilities,  Post  the  Net  Gain  to 
the  credit  of  Win.  Burke's  account.  Balance  and  rule  his  account  and  bring  down  the 
Present  Capital.  Your  books  are  now  in  condition  to  be  kept  by  double  entry.  Take  a 
trial  balance  to  make  certain  that  you  have  made  no  error.  Be  sure  to  include  the  balance 
of  cash  on  hand  in  your  trial  balance.  Copy  same  neatly  on  page  16  of  the  Cash  Book. 
Present  all  books  for  inspection  and  apjiroval. 

Omissions  in  Business.  In  business,  when  the  books  have  been  kept  by  Single  Entry, 
it  is  often  impossible  to  obtain  a  correct  inventory  of  tlie  resources  and  liabilities  at  any 
given  time,  owing  to  tlic  incompleteness  of  that  system;  and  hence  the  net  gain  or  net  loss 
of  the  business  for  that  period,  and  the  proprietor's  present  capital,  as  shown  by  the  inven- 
tory, will  not  correctly  represent  the  facts.  For  instance:  If  a  note  had  been  issued,  and 
no  record  made  of  it,  and  the  note  was  unpaid  and  not  thought  of  at  tlie  time  of  making 
the  inventory,  the  liabilities  would  be  the  amount  of  the  note  too  small.  This  omission 
would  liavc  the  effect  of  increasing  the  net  gain  or  decreasing  the  net  loss,  which  in  turn 
would  make  the  present  capital  greater  than  it  should  be,  or  the  net  insolvency  less  than  it 
should  be.  The  omission  of  a  resource  at  the  time  of  making  an  inventory  would  have  just 
the  opposite  effect  of  the  above  results. 

How  Corrected.  There  are  two  ways  of  correcting  such  omissions.  One  way  is  to 
change  tlie  invciitoiy  at  the  time  tlie  omission  is  discovered,  and  then  make  the  necessary 
changes  in  the  Ledger.  The  other  and  better  way  is  to  make  such  an  entry  in  the  Journal, 
or  other  principal  book,  as  will  cause  the  account  to  which  the  omitted  item  belonged  to 
show  its  true  relation  to  the  business,  and  the  projjrietor's  account  to  show  his  true  jircscnt 
capital,  so  far  as  it  can  be  determined  at  that  time.  If  a  resource  had  been  omitted  from 
the  inventory,  debit  the  account  to  ■which  it  belonged  and  credit  the  proprietor's  account; 
if  a  liability,  debit  the  proprietor  and  credit  the  liability.  The  advantage  of  the  second 
method  will  be  apparent  wlien  it  is  stated  that  several  items  are  liable  to  be  omitted  from 
the  inventory;  and  the  omission  may  not  be  discovered  until  some  time  after  the  books  have 
been  changed  to  Double  Entry,  If  these  items  were  discovered  at  different  times,  as  is 
generally  the  case,  it  would  necessitate  changing  the  inventory  that  number  of  times  by  the 
first  method,  while  by  the  second  only  so  many  entries  on  the  Double  Entry  books  would  be 
necessary. 

It  is  nceessary  to  debit  or  credit  the  projirietor's  account,  as  the  case  may  be,  for  the 
amount  of  the  omitted  item,  or  items,  for  two  reasons:    First,  to  cause  his  account  to  show 


OFFICE    ROUTINE    AND    BOOKKEEPING.  235 

his  trne  worth  at  the  time  of  changing  the  boolcs,  and  second,  to  he  able  to  determine  the 
actual  gain  or  loss  for  the  period  following  the  change.  This  is  very  important  in  case  a 
partner  had  been  admitted  at  the  time  the  ])ooks  were  changed.  If  the  Loss  and  Gain 
account  had  been  debited  or  credited  for  the  omitted  items,  as  is  sometimes  done,  that 
account  would  not  show  the  actual  gains  or  losses  for  the  period  during  which  the  account 
remained  open,  and  the  new  partner  would  be  debited  with  a  greater  net  loss  or  credited 
■with  a  greater  net  gain  than  he  should  be. 

Single  Entry  as  practiced  in  Business.  Single  entry  as  practiced  in  business  may 
be  defined  as  any  system  of  bookkeeping  in  which  an  equality  of  debits  and  credits  is  not 
preserved,  thereby  making  it  impossible  to  take  a  tri;d  balance.  Very  often  all  or  nearly  all 
the  labor  saving  forms  used  in  double  entry  are  employed,  and  accounts  witli  the  different 
kinds  of  property  and  allowances  are  kept,  thus  enabling  the  bookkeeper  or  proprietor  to 
ascertain  the  sources  of  tlio  losses  and  gains,  the  same  as  in  double  entry,  the  only  difference 
being  that  it  is  impossible  to  apply  the  test  which  the  trial  balance  affords  in  double  entry. 

Questions.  Define  Single  Entry.  Explain  the  difference  between  Double  and  Single 
Entry.  What  are  the  only  records  absolutely  necessary  in  Single  Entry?  Why  is  it  not 
customary  to  keep  books  by  the  purely  single  entry  method  in  business?  Describe  the 
method  of  making  an  entry  in  the  Single  Entry  Day  Book-Journal.  Why  is  it  impossible 
to  take  a  trial  balance  in  single  entry?  Can  you  make  a  balance  sheet  in  Single  Entry? 
How  do  you  change  to  Double  Entry?  How  can  you  tell  when  a  set  of  books  is  in  condi- 
tion to  be  kept  by  Double  Entry?  How  do  you  ascertain  the  Net  Gain  or  Net  Loss  in 
Single  Entry?  Which  method  do  you  prefer.  Single  Entry  or  Double  Entry?  Give  a  good 
reason  for  your  answer  to  the  above.  Explain  the  method  of  correcting  an  error  or  omission 
in  the  Inventory  of  Kesources  and  Liabilities. 


236  OFFICE    ROUTINE    AND    HOOK  KEEPING. 

MISCELLANEOUS  TOPICS 

Business  StateiiU'iit  —  Auiil.vtical  Form.  The  Balance  Sheet  used  tliroughout 
this  book  is  not  universally  used  in  Ijusiness.  It  has  been  given  the  preference  over 
other  forms  of  business  statements  because  it  tends  to  develop  the  mental  faculties  of  the 
student  better  tlian  other  forms  would.  To  persons  conversant  in  the  art  and  science  of 
double  entry  bookkeeping,  a  Balance  Sheet  or  business  statement  of  any  kind  is  unneces- 
sary, as  the  facts  desired  can  (or  ought  to  be)  obtained  from  the  Ledger.  The  objection 
urged  against  the  Balance  Sheet  is  that  it  conveys  little,  if  any,  information  to  those  who 
are  not  skilled  in  the  art  and  science  of  accounting. 

The  form  of  Business  Statement  illustrated  on  page  237,  while  furnishing  comprehensive 
information,  is  so  simple  that  it  may  be  understood  by  those  who  do  not  understand  book- 
keeping. You  will  observe  that  it  contains,  in  compact  form,  the  same  information  that  is 
given  in  the  illustrations  on  ))ages  4,  6,  36  and  38.  This  form  of  statement  is  usually  made 
in  the  Journal,  and  with  slight  modifications  and  abridgments,  is  used  in  a  large  per  cent, 
of  the  business  offices  in  this  and  foreign  countries. 

The  forms  of  business  statements  given  in  this  book  are  intended  to  instruct  the  begin- 
ning student,  and  not  the  expert  accountant.  The  statements  used  in  business  are  of 
numerous  designs  and  many  of  them  are  of  a  complicated  nature.  The  student  who  is 
fitting  himself  as  a  professional  bookkecjicr  is  advised  to  consult  the  higher,  technical  works 
on  accounting  for  further  information  concerning  the  various  forms  of  statements  that  may 
be  used  in  business.  Ask  your  teacher  to  advise  you  what  books  of  reference  to  consult. 
Every  bookkeeper  should  read  one  or  more  of  the  jieriodicals  devoted  to  the  interests  of  the 
bookkeeping  profession. 

Suspense  Account.  With  many  firms  it  is  the  custom  to  close  all  doubtful  accounts 
receivable  into  a  Suspense  Account.  This  account  is  ordinarily  kept  similar  to  the  Sundry 
Accounts  Receivable  illustrated  on  page  131;  it  is  debited  each  time  an  account  is  closed 
into  it,  and  credited  for  all  receipts  (if  any)  directly  opposite  the  parties'  names  who  nuide 
the  ])avments.  This  method  is  considered  objectionable  by  some  V)usiness  men,  as  there  is  a 
possibility  of  giving  offense  to  strictly  honest  customers,  who  may  be  temporarily  unable  to 
meet  their  obligations,  yet  intend  to  pay  as  soon  as  able.  To  overcome  this  objection  the 
following  method  of  treating  doubtful  accounts  is  given. 

Inventory  of  Doubtful  Kesources.  Before  closing  the  books  a  list  should  be  made, 
in  the  Inventory  Book  or  Journal,  of  all  accounts  on  which  it  is  not  expected  that  the  full 
amount  will  be  realized.  Next  have  the  proprietor,  or  some  one  able  to  judge,  make  an 
estimate  of  what  is  expected  to  be  realized  on  each  account  and  place  this  amount  opposite 
the  total  amount  of  each  account  on  j-our  list.  Foot  tiie  two  columns  and  carry  the  differ- 
ence between  them  to  the  debit  of  the  Loss  &  Gain  account,  in  red  ink,  specifying  it  as 
•'  Doubtful  Kesources."  Should  the  losses  turn  out  to  be  less  than  what  was  expected,  the 
above  Liability  Inventory  will  help  to  increase  the  gains  at  a  subsequent  closing  of  the  books. 
By  this  method  all  accounts  receivable  remain  open  and  there  will  be  no  ])rol)able  chance 
of  persons  learning  that  their  accounts  are  considered  doubtful. 

C.  0.  D.  Account.  Some  firms  do  a  large  business  on  orders  sent  C.  U.  1).  When 
goods  are  so  sent  a  C  0.  D.  account  is  opened,  which  is  similar  in  form  to  the  Sundry 
Accounts  Receivable  account,  and  the  parties  ordering  goods  are  charged  therein.  When 
remittances  are  received  the  proper  parties  are  credited.     Often,  however,  these  C.  0.  D. 


OFP^ICK     ROUTINE    A.\I)     iJOOKKIiEl'ING. 


■2:Vt 


sales  are  charged  direct  to  the  Express  Company,  but  as  it  is  resi)oiisibk>  only  in  trust  and 
not  absolutely,  tlie  principle  is  wrong.  The  heading,  C.  O.  D.  Account,  would  be  strictly 
in  accordance  with  tiie  facts. 


.Statement  of  VVm.  Wood's  Business,  Mar.  15,  1S9-. 


Tkiai,  Balanck, 

Wm.  Wood, 

4925 

00 

Cash. 

4670 

50 

Merchandise, 

70 

00 

Expense, 

18 

50 

J.  W.  Winter, 

90 

00 

S.  W.  Snow, 

400 

00 

.las   Spring, 

50 

00 

Bills  Receivable, 

1600 

00 

Bills  Payable, 

RESOnBCES. 

1000 

00 

64  ir. 

00 

6415 

00 



Ca.sh  on  band, 

4676 

50 

Merchandise,  per  inventory, 

333 

00 

Bills  Receivable,  good  notes, 

1600 

00 

Accounts  Receivable,  .las.  Spring, 

50 

00 

LlA]!II,ITIES. 

6658 

50 

Bills  Payable,  lie  owes  on  notes, 

1000 

00 

Accounts  Payable,  he  owes  others, 
Wm.  Wood's  Present  Capital, 

Gains. 

490 

00 

1490 

00 

516S 

50 

Merchandise,  Sales  (Ledger  credit),                                          1990.00 

Inventory,                                                                  333.00 

"            Sold  and  on  hand  is  worth. 

2333 

00 

"         Cost  (Ledger  debit), 
"            Gain, 

2060 

00 

262 

00 

Losses. 

Expense,  Cost  (Ledger  debit),  no  inventory, 
Wm.  Wood's  K^et  Gain, 

Wm.  Wood's  Capital  AccotJNT 

18 

50 

Si3 

50 

Wm.  Wood's  investment  (Ledger  credit). 

,5000 

no 

"           "        withdrawals  (Ledger  del)il), 

75 

oo 

4925 

00 

"           "        gain  (Ledger  credit). 
Present  Capital, 

Trial  Balance  After  Closing. 

243 

50 

SIGS 

50 

Wm.  Wood, 

5168 

50 

Cash, 

4676 

no 

Merchandise, 

333 

00 

J.  W.  Winter, 

90 

00 

S.  W.  Snow, 

400 

00 

.Tas.  Spring, 

50 

00 

Bills  Receivable, 

1600 

00 

Bills  Payable, 

lono 

6658 

00 

6K58 

.50 

.50 

1 

1 

DICTIONARY  OF  COMMERCIAL  WORDS  AND  PHRASES. 


_^CCEPTANCE.  — Agreeing   to   the    terms  pro- 
posed; the  acceptor's  name  written  on  llie  face 
of  a  bill  of  exchange  or  draft,  usually  with  the 
word  "Accepted";  bill  of  exchange  or  draft 
when  accepted. 
Accommodation   Papeii.  —  Notes   or   acceptances 
drawn  for  the  purpose  of  being  discounted,  and 
not  founded  on  an  actual  sale  of  goods;  notes  or 
bills  signed  and  accepted  without  consideration; 
notes  drawn  bj-  nierchiiuts  for  like  amounts  and 
exchanged  for  their  mutual  accommodation. 
AocovNT   CuRUENT. — A  running  account.     A  de- 
tailed statement  of  the  transactions  between  two 
persons  or  firms,  usually  expressed  in  the  form 
of  debtor  and  creditor. 
Account  Sales. — An  itemized  statement  of  sales 
and  expenses,  sent  by  a  commission  merchant 
to  his  principal.     It  exhibits  the  quantities  and 
prices  of  the  goods  sold,  the  commissions  and 
other  charges,  and  the  net  proceeds. 
AcCKUED. — Interest  accumulated  and  unpaid. 
Acknowledge. — In  commercial  correspondence,  the 
term  by  which  the  receipt  of  a  letter,  remittance, 
or  order,  is  admitted. 
Acknowledgment. — A  formal  admission  made  be- 
fore an  ofTicer,  that  the  act  described  was  vohm- 
tarily   done.      The    officer's   certificate   of  the 
admission  is  also  called  an  acknowledgment. 
Administkatou. — One  who  is  appointed  by  the  court 

to  settle  an  estate. 
Ad  Valouem.  —  According  to  value.     A  custom 
house  term,  relating  to  the  estimating  of  duties 
upon  the  value  of  imported  goods. 
Affidavit. — A  written  declaration  under  oath. 
Appraisal. — The  act  of  placing  a  value  on  goods. 
Arbithation. — The  adjustment  of  a  disputed  point 
by  a  person  or  persons  chosen  by  the  parties  in 
dispute. 
Assets. — A  term  commonly  used  in  trade  to  desig- 
nate the  funds,  property,  or  efTccls,  that  is,  the 
stock  in  trade,  cash,  and  all  the  available  projv 
erty  of  a  merchant,  in  contradistinction  to  his 
liabilities  or  obligations. 
AfisiGNEE. — A  person  to  whom  the  property  of  a 
bankrupt  or  an  insolvent  debtor  is  transferred 
for  the  benefit  of  the  insolvent's  creditors. 
Assignment. — The  act  of  transferring  property  to 

the  assignee. 
Attachment. — A  warrant  for  the  purpose  of  seizing 
a  man's  property. 


Auditor. — One  who  examines  accounts;  an  officer 
appointed  by  the  government,  or  by  any  corpo- 
ration, to  examine  claims  upon  the  treasury, 
and  to  investigate  the  trca.surer's  accounts. 

Auxiliary. — Applied  to  various  account  books  that 
are  kept  as  aid  to  the  principal  books. 

^  ALANCE  of  trade.— The  difference  between 
the  value  of  the  commercial  imports  and  exports 
of  any  country. 

Bank  Book. — A  pa-ss  book  carried  by  a  depositor, 
in  which  the  teller  of  a  bank  records  deposits, 
and  in  which  the  bookkeeper  enters  the  paid 
checks  at  stated  intervals. 

Bank  Bills  ok  Notes.— Promissory  notes  printed 
by  the  government  and  issued  by  national  banks, 
payable  on  demand,  and  used  as  money. 

BAKKurPT.— One  who  is  unable  to  pay  his  debts, 
and  who  fails  in  business. 

Bill. — A  statement  in  writing,  as  a  list  of  items 
bought  or  sold,  or  of  services  rendered.  The 
common  term  applied  to  a  note  or  draft. 

Bill  of  Exchangk. — An  order  for  the  payment  of 
money,  usually  drawn  on  a  per.«on  living  in  a 
foreign  country,  the  term  draft  being  used  to 
designate  bills  that  are  payable  in  the  same 
country  in  which  they  are  drawn. 

Bill  op  Lading. — A  written  account  of  goods  ship- 
ped and  the  conditions  of  shipment,  having  the 
signature  of  the  carrier's  agent,  and  given  to 
the  shipper  as  a  receipt. 

Bill  of  Sale.  — A  writing  given  by  the  seller  to  the 
buyer,  transferring  the  ownership  of  personal 
property. 

BOAun  of  TrvVDE. — An  association  of  businessmen 
for  the  regulation  and  advancement  of  commer- 
cial interests. 

Bonded  Goods. — Those  which  are  stored  in  a  bonded 
warehouse,  or  in  bonded  cars,  the  owner  having 
given  bonds  securing  the  payment  of  import 
duties  or  of  internal  revenues,  upon  their  re- 
moval, or  their  arrival  at  some  inland  city  of 
entry,  and  before  a  siiecilied  time. 

Bonus. — A  premium  given  on  a  loan,  or  for  any 
favor  shown. 

Broker. — An  agent  who  effects  sales  or  purchases 
or  who  makes  loans  and  contracts  for  another. 
Also  a  term  applied  to  one  who  deals  in  stocks. 
A  broker  does  not  usually  have  possession  of  the 
property  which  he  sells  or  buys  as  agent. 

;^8 


DICTIONARY    OF    COMMERCIAL    WORDS    AND    PHRASES. 


239 


Bullion. — Uncoined  gold  or  silver. 

Business. — E.xchange  of  commodities  and  of  com- 
mercial values.  Also  a  term  representing  one's 
occupation. 

r^APITAL.^The  investment  in  business. 

Cash  Sales. — The  sales  made  for  ready  money  in 
contradistinction  to  sales  on  whicli  credit  is 
given. 

Certificate. — A  written  voucher  attesting  to  some 
fact;  as  a  certificate  of  deposit,  a  certificate  of 
stock. 

Certified  Check. — One  which  has  been  certified 
or  accepted  by  the  bank  on  which  it  is  drawn, 
making  the  bank  responsible  for  its  payment. 

Charter. — A  paper  from  government  defining  the 
rights  and  privileges  of  corporation.s.  To  hire 
or  let  an  instrument  of  transportation;  as,  a  ship, 
a  railway  car. 

Chattel. — Any  kind  of  property  except  real  estate; 
as,  merchandise,  notes  and  accounts,  animals, 
leases  of  real  estate,  etc. 

Check. — An  order  on  a  bank  drawn  by  a  depositor. 

Clearing  House. — A  kind  of  banking  exchange, 
established  in  some  of  the  large  cities  for  the 
convenience  of  daily  settlements;  the  drafts  and 
checks  on  each  other  are  mutually  exchanged 
without  the  individual  presentation  of  each  at 
the  banks,  and  a  balance  struck,  which  balance 
only  is  paid  in  cash. 

Collaterals. — Pledges  of  stocks,  notes,  or  chattels, 
for  security  of  loans  and  other  indebtedness. 

Commerce. — The  business  of  exchanging  commodi- 
ties between  different  places;  mercantile  business 
in  general,  as  carried  on  between  individuals  or 
companies  of  different  countries,  or  of  the  same 
country;  and  in  a  restricted  sense,  the  shipping 
which  belongs  to  a  country. 

CoMMERCi.\L  Paper. — Bills  of  exchange,  drafts,  and 
notes,  given  in  the  course  of  trade. 

Commission. — A  percentage  given  for  the  sale  or 
purchase  of  goods,  or  the  transaction  of  other 
business;  the  order  or  authority  by  which  one 
person  transacts  business  for  another. 

Common  Law. — Law  based  upon  the  precedent  of 
usage,  and  not  contained  in  the  statutes  enacted 
by  legislative  bodies. 

Company. — A  corporation.  A  term  used  in  a  firm 
name  to  designate  other  partners  whose  names 
are  not  given. 

Compound,  or  Cojepromise. — To  settle  a  claim  by 
paying  or  receiving  only  a  part  of  the  amount. 
To  agree  upon  a  settlement  based  upon  mutual 
concessions. 


Consignee. — One  to  whom  goods  are  sent. 

Consul. — An  agent  for  a  government,  residing  at  a 
seaport  in  a  foreign  country,  and  guarding  the 
commercial  interests  of  his  own  country. 

Contra. — On  the  opposite  side. 

Copartnership. — The  joining  of  two  or  more  per- 
sons into  one  firm  for  the  purpose  of  carrying 
on  any  enterprise.  It  has  the  same  meaning  as 
partnership. 

Copyright. — The  right  granted  by  government  to 
an  author  to  control  the  publication  of  any  book 
or  work. 

Counterfeit. — A  spurious  bank  bill;  a  forgery. 

Counting  room. — A  room  in  which  merchants  keep 
their  accounts  and  transact  business. 

Coupon. — An  interest  note  or  a  certificate  attached 
to  a  bond  which  is  cut  oil  from  the  bond  and 
collected  when  due. 

Course  of  Exchange. — The  sum  merchants  pay 
for  bills  of  exchange  to  en.able  them  to  make 
remittances  from  one  country  to  another. 

Credentials. — Testimonials  giving  authority. 

Creditor. — One  giving  credit;  one  whom  we  owe. 

Currency. — The  paper  money  or  the  coin  which 
constitutes  the  circulating  medium  of  a  country; 
that  which  passes  for  money  in  a  country. 

J)AYS  OF  GRACE.— In  some  states  negotiable 
promissory  notes  or  bills  of  exchange,  payable 
at  a  certain  time,  are  entitled  to  three  days  de- 
lay beyond  the  time  expressed,  which  are  called 
days  of  grace,  unless  "  without  grace "  is  ex- 
pressed on  the  paper.  These  days  were  so  called 
because  they  were  formerly  gratuitously  allowed. 
But  now,  in  some  of  the  states  of  the  United 
States  and  in  England,  they  are  demanded  of 
right,  the  custom  having  passed  into  law.  In  a 
number  of  states  days  of  grace  have  been  abol- 
ished by  law. 

Debtor. — One  who  owes  a  debt. 

Deed. — A  written  contract  under  seal,  usually  trans- 
ferring the  ownership  of  real  estate. 

Def^\xcation. — Deduction  or  discount.  Embezzle- 
ment of  money  by  an  officer  having  it  in  charge. 

Deposit. — To  commit  to  the  care  of  another;  espe- 
cially to  place  money  in  bank  subject  to  our 
order. 

Dishonor. — A  failure  to  pay  an  obligation  when 
due.  A  failure  to  accept  a  draft  when  presented 
for  acceptance. 

Dividend. — The  portion  allotted  to  each  stockholder 
in  the  division  of  profits. 

Dower.— The  right  of  a  widow  to  a  life  interest  in 
one  third  of  all  the  real  estate  owned  by  lier 
husband  at  any  time  after  their  marriage. 


240 


DICTIONARY    OT    <-■(  a, -^ikrcj^^^l    WORDS    AND     PHRASES. 


DnE  Bill. — A  brief  written  adtiiowli'dginuut  of  a 
debt,  having  tlje  effect  of  a  promissory  note. 

Dunning. — Soliciting  payment  for  a  debt;  or  the 
urgent  pressing  of  the  payment  of  a  debt. 

J^ARNEST.  —  Part  of  purchase  money  paid,  or 
part  of  goods  delivered  to  bind  a  verbal  contract. 

Embezzlement. — A  fraudulent  appropriation  of 
money  entrusted  to  one's  care. 

Empokil'.m.  — A  commercial  center. 

Endouse,  or  Indohse. — To  ■write  one's  name  on  the 
back  of  a  commercial  paper.  To  receipt  a  par- 
tial paj'ment  on  the  back  of  a  note  or  bill. 

Enguoss. — To  copy  in  manuscript. 

EqtJiTT. — The  science  of  right  and  justice,  which 
often  corrects  the  application  of  law  in  a  par- 
ticular case. 

Exchange. — The  giving  of  one  value  for  anotlier. 
The  process  of  remitting  money  values  by  means 
of  bills  and  drafts.  The  discount  or  premium 
arising  from  the  purchase  or  sale  of  different 
clas-ses  of  paper. 

Execution. — A  written  direction  given  to  an  officer 
authorizing  him  to  enforce  a  judgment.  The 
act  of  signing  and  sealing  a  legal  instrument. 

JpAC  SIMILE.— An  exact  copy. 

Fee  Simple. — The  absolute  ownership  of  real  estate. 

FiNANCiKK. — One  liaving  charge  of  the  public  reve- 
nues.    One  skilled  in  money  matters. 

Fiscal. — Pertaining  to  the  public  treasurj'  or  reve 
nue.  As,  tlie  fiscal  year,  meaning  a  financial 
year  as  reckoned  by  the  department  of  finance. 

Fixtures. — The  furnishings  of  a  store  or  ofiice  that 
are  not  movable. 

Folio. — The  page  of  an  account  book. 

Footing. — The  amount  of  a  column  of  figures. 

Forgeuy. — Tlic  act  of  fraudulently  writing  or  alter- 
ing a  written  document. 

Free  Trade.  —  Commerce  between  nations  unre- 
stricted by  duties  or  tariff  regulations. 

Freight.  —  Jlerchandise  being  transported.  The 
price  paid  for  transportation. 

(jJ-AUGING. — The  process  of  measuring  the  con- 
tents of  casks. 

Good  Will. — The  reputation  and  patronage  that 
pertains  to  an  established  business.  The  good 
will  of  a  business  is  very  frequently  the  subject 
of  purchase  and  sale. 

Greenbacks. — United  Stales  notes,  as  distinct  from 
national  bank  notes. 

Gross  Weight. — Weight  of  merchandise,  including 
the  cose  or  wrapping. 


Guarantee,  or  Guaranty. — A  surely  for  the  per- 
formance of  a  contract,  in  case  the  party  making 
the  contract  fails  to  keep  it.  A  security  against 
loss. 

JJONOU. — To  accept  a  draft,  or  to  pay  it  when  due, 

J  ly  DEMNITY. — Security  against  loss,  such  as  may 
occur,  or  has  occurred,  l)y  reason  of  some  par- 
ticular or  specified  event,  as  in  case  of  ordinary 
insurance  against  loss  by  fire,  etc. 

Indenture. — A  mutual  agreement  in  writing  be 
tween  two  or  more  parties. 

Indorsement. — A  writing  on  the  back  of  any  com- 
mercial paper. 

Infringement.  —  To  trespass  upon  the  rights  of 
another,  especially  when  granted  some  special 
right  by  law,  such  as  a  copyright,  a  patent,  or  a 
trade  mark. 

Injunction. — A  writ  or  process  bj'  which  a  party  is 
required  to  do  or  refrain  from  doing  a  special 
act. 

I.  O.  U. — I  owe  you — an  acknowledgment  of  indebt- 
edness, by  the  signer  to  the  holder,  for  the 
amount. 

Insolvency. — The  condition  of  one  who  is  unable 
to  pay  his  debts  or  meet  his  commercial  obliga- 
tions. 

Installment. — Part  of  a  sum  of  money  paid  or  to 
be  paid. 

Instant. — Referring  to  the  present  month;  as,  the 
sixth  instant  means  the  sixth  day  of  the  present 
or  current  month.     Abbreviated  iiist. 

Intestate. — Dying  without  liaving  made  a  wilL 

Inventory. — A  schedule  or  list  of  the  goods,  wares 
and  merchandise  generally,  credits  and  assets  of 
a  merchant,  made  out  in  minute  detail,  each 
article  being  set  down  separately,  and  separately 
valued,  usually,  according  to  its  then  cash  value; 
the  whole  list  being  then  entered  in  a  book  called 
an  inventory  book. 

Invoice. — An  itemized  bill  of  merchandise  bought, 
sold  or  shipped. 

Jobber. — a  wholesale  merchant  who  buys  goods 
from  the  importers  and  man u fact urers,  and  sells 
to  country  or  other  merchants  and  to  retailers. 

Joint  Stock. — Properly  held  in  common  by  a  cora- 
panj'  of  men,  each  of  whom  is  called  a  stock- 
holder. 

Judgment. — The  decree  of  a  court  enforcing  a  con- 
tract or  redressing  a  wrong. 

Law  MERCHANT.— Commercial  law,  or  such 
customs  and  usages  in  commercial  transactions. 


DICTIONARY    OF    COMMERCIAL    WoRPS    AND     I'llRASES. 


241 


as  being  recognized  by  the  higher  courts  as 
establishing  rules  of  action,  thus  acquire  the 
force  of  law. 

Lbase. — The  letting  of  land  and  other  property  for 
hire.  The  contract  for  such  letting,  usually 
written,  but  sometimes  verbal  when  the  con- 
tract terminates  within  a  year. 

Legacy. — A  gift  of  propert}-  by  will. 

Legal  Tender. — That  kind  of  money  which  legally 
can  be  offered  in  payment  of  a  debt. 

Letter  of  Credit. — A  letter,  usually  addressed  to 
banking  houses  in  foreign  cities,  authorizing  the 
holder  to  receive  credit  for  a  stated  amount. 
They  are  used  mainly  by  travelers. 

Liabilities. — The  pecuniary  obligations  of  a  mer- 
chant, which  includes  his  bills  payable  and  all 
his  other  debts. 

License. — Permission  or  liberty  to  prosecute  busi- 
ness or  to  sell. 

Lien. — The  riglit  of  holding  or  detaining  the  prop- 
erty of  another  until  some  legal  claim  be  satisfied. 

Liquidate. — To  pay  or  settle  a  claim. 

jy^AKER.— The  signer  of  a  note. 

Manifest. — An  invoice  or  schedule  of  a  ship's  cargo. 

Matdritt. — The  date  when  commercial  paper  be- 
comes payable. 

Mekchandise. — In  its  most  comprehensive  signifi- 
cation embraces  every  article  dealt  in  by  a 
merchant. 

Money. — Any  coin  or  currency  lawfully  employed 
as  a  representative  of  value  in  buying  and  selling. 

Monopoly. — The  sole  right  to  make  or  sell  a  certain 
article.     The  exclusive  control  of  anything. 

Mortgage. — The  written  pledge  of  real  estate  or 
chattels  to  secure  payment  of  a  debt. 

[^EGOTLVBLE. — A  term  applying  to  commercial 
paper,  that  may  be  transferred  by  endorsement, 
or  simply  by  delivery 

Net. — Clear  of  all  charges.  The  exact  weight  or 
amount  after  all  deductions  are  counted  out. 

Net  Proceeds. — The  proceeds  of  a  sale  after  all 
expenses  are  deducted. 

Notary,  or  Notaiit  Public. — An  officer  who  ac- 
knowledges deeds  and  other  commercial  papers; 
but  who.se  chief  business  is  to  protest  paper  for 
non-acceptance  and  non-payment. 

QPEN  ACCOUNT. —A  running  account  on  a 
merchant's  books,  of  debits  or  credits,  with  an 
individual  or  firm. 

Open  Policy'.  —  One  Intended  to  cover  all  goods 
shipped  by  a  certain  person  within  a  specified 
time;  each  special  shipment  and  the  amounts  of 


insurance  to  be  indorsed  upon  the  policy,  as  the 

shipments  are  made. 
Outlawed. — A  term  applied  to  a  debt  which  has 

run  beyond  the  time  when  the  law  will  enforce 

its  payment. 
Overdrawn. — To  draw  a  greater  sum  than  one  has 

to  his  credit. 

Par. — Equal  in  value.  Any  paper  is  at  par  when 
it  is  worth  its  face  value,  without  premium  or 
discount. 

Parol. — Oral,  not  written.  Also  applied  to  writ- 
ten contracts  not  under  seal. 

Partnership. — The  association  together  of  two  or 
more  persons  in  any  occupation. 

Par  Value. — The  nominal  value;  usually  the 
printed  or  written  value  of  any  paper. 

Pass  Book. — A  book  in  which  a  trader  enters  ar- 
ticles bought  on  credit.  It  is  usually  carried  by 
the  purchaser,  and  is  presented  for  record  when 
the  purchases  are  made. 

Patent. — An  official  document  securing  to  a  person 
for  a  term  of  years,  the  exclusive  right  to  an 
invention. 

Pawn. — A  deposit  or  pledge,  given  as  security  for  a 
loan.  The  term  only  applies  to  chattels  or 
money,  and  not  to  real  estate. 

Payee. — The  one  to  whom  payment  is  to  be  made; 
especially  in  whose  favor  a  paper  is  drawn. 

P.\yer. — The  one  who  pays  or  is  under  obligations 
to  pay. 

Personal  Property.  —  All  property  except  real 
estate;  chattels. 

Plaintiff. — One  who  brings  a  personal  action  in  law 
against  another  party  who  is  called  the  defendant. 

Power  of  Attorney'. — A  written  instrument  giv- 
ing an  agent  authority  to  act  for  his  principal. 
An  agent  thus  empowered  is  called  an  Attorney 
in  Fact. 

Preferred  Stock. — Stock  taking  preference  over 
the  ordinary  stock  of  a  corporation.  A  divi- 
dend is  declared  and  paid  on  preferred  stock 
before  any  can  be  declared  on  common  .stock. 

Prima  Facie, — At  first  view.  Prima  facie  evidence  is 
that  evidence  which  is  sufficien-t  unless  rebutted. 

Promissory  Note. — A  written  promise  to  pay  a  cer- 
tain sum  of  money  unconditionally,  at  a  speci- 
fied time. 

Pro  Rata. — A  proportional  distribution. 

Protective  Tariff.— Rates  of  duty  fixed  higher 
than  the  uniform  rates,  on  certain  imported 
commodities,  for  the  protection  of  home  manu- 
facturers. 

Protest. — A  formal  declaration  made  by  a  notary 
public,  of  the  non-payment  of  a  note,  or  non- 
acceptance  and  non-payment  of  a  draft. 


242 


DICTION'AkV    OK    COMMERCIAL    WORDS    AND    PHRASES. 


QUARAXTIXE.  — Restraint  of  intercourse  to 
which  a  ship,  dwelling,  or  town  is  subjected  on 
account  of  being  infected  with  some  contagious 
disease. 

Quotations. — The  piiblislied  prices  of  merchandise, 
rates  of  freight,  rates  of  exchange,  etc. 

J?ATIFY. — To  sanction  or  approve;  usually  ap- 
plied to  a  principal's  approval  of  an  agent's 
transactions. 

Rebate. — A  discount,  or  an  allowance  from  the  stip- 
ulated price,  m.ide  in  consideration  of  prompt 
payment,  or  for  other  reasons. 

Receivek. — A  person  appointed  to  take  charge  of 
the  affairs  of  a  corporation  on  its  dissolution, 
and  to  distribute  its  property  according  to  law. 

Remittance. — The  act  of  transmitting  money  values 
from  one  place  to  another.  The  value  sent  is 
called  a  remittance. 

Resources. — Money,  property,  or  that  which  can 
be  converted  into  property ;  as,  claims  against 
other  people,  either  on  writen  or  verbal  promises. 

Revocatjok. — The  recall  of  authority  conferred  on 
another;  as  the  revocation  of  an  agency. 

ftALVAGR — An  allowance  made  by  .aw  to  those 
who  save  a  ship's  cargo  from  a  wreck  or  fire. 

Set-off. — A  counter  claim.  A  claim  which  the 
debtor  or  defendant  brings  to  reduce  the  claim 
of  a  creditor  or  plaintiff. 

Solvent. — Being  able  to  pay  one's  liabilities. 

Statement. — A  list  of  resources  and  liabilities.  A 
report  of  an  agent's  transactions  sent  to  his 
principal.  An  itemized  list  of  the  debits  and 
credits  of  any  personal  account;  as,  monthly 
statements  sent  by  merchants  to  their  cus- 
tomers. 

Statute. — A  law  enacted  by  a  legislature. 

Stockuolder. — One  who  owns  shares  of  the  capital 
stock  of  a  corporation. 

Sue. — To  bring  an  action  against  one  in  law. 

SUBETV. — A  person  who  has  made  himself  respon- 
sible for  the  contract  of  another. 


Syndicate. — A  number  of  capitalists  who  unite  to- 
gether to  dispose  of  a  large  loan,  or  to  conduct 
some  great  financial  enterprise. 

'J'ACIT. — That  which  is  understood  or  implied. 

Tare. — An  allowance  made  for  the  weight  of  boxes, 
barrels,  or  wrappings  of  merchandise.  The  re- 
mainder after  deducting  the  tare  is  called  net 
weight. 

Tariff. — A  list  of  prices;  as,  a  freight  tariff.  A 
list  of  duties  or  customs  on  imports  or  exports. 

Telegram.  —  A  dispatch  or  message  received  or 
transmitted  by  the  electric  telegraph. 

Teller. — One  who  receives  or  counts.  A  bank 
officer  who  receives  or  pays  out  money. 

Tickler. — A  book  containing  memorandums  of 
notes  and  debts,  arranged  in  the  order  of  their 
maturity. 

Trade  Discount.  —  A  discount  from  certain  list 
prices,  or  from  the  amount  of  purchases,  made 
to  a  dealer  on  account  of  a  change  in  the  prices, 
or  on  account  of  cash  payments. 

"Q^LTIMO. — The  last  month  preceding  the  present; 
as,  on  the  twentieth  ultimo,  meaning  the  twen- 
tieth of  last  month.     Abbreviated  ult. 

Usury. — Interest  in  excess  of  the  highest  rate  allowed 
by  law. 

^TaLID. — A  term  applied  to  a,  contract  that  is 
properly  executed;  that  is,  legal  or  binding. 

Void. — Having  no  legal  or  binding  force. 

Voucher. — A  document  or  paper  proving  that  some 
transaction  occurred ;  as,  a  receipt  or  a  canceled 
note  is  a  voucher  for  the  payment  of  money. 

YY  ARRi\JNTY. — An  agreement  to  become  respon- 
sible, if  certain  facts  do  not  turn  out  to  be  as 
represented. 

Wav  Bill. — A  paper  containing  a  list  and  descrip- 
tion of  goods  sent  b}-  railroad. 

Wholesale — To  sell  goods  iu  quantity;  usually.  In 
uubrokeu  or  whole  packages. 


ABBREVIATIONS  AND  CONTRACTIONS. 


aoT  @.  (L.  ad).    To  w  at. 

A.  or  Atis.     Answer. 

A  1.     First  Class. 

Ace,  Aect,  or  c/c.     Account. 

Acet.  Cur.     Account  Current. 

Acct  Saks.    Account  of  Sales. 

Afft.     Agent. 

Admr.     Administrator. 

Admx.     Administratrix. 

Adv.     Advertisement;  Advocate;  Advent;  Adverb. 

Ala.     Alabama. 

A.  M.    (L.  Arlinm  Magister).     Master  of  Arts. — (L. 

Ante  Meridiem).  Before  noon. — (L.AnnoMundi). 

In  the  year  of  the  world. 
Am.,  Amer.     America,  American. 
Amt.     Amount. 
Ans.    Answer. 
App.     Appendix. 
Apr.     April. 

Ariz.     Arizona  Territory. 
Ark.     Arkansas. 
Ass'd    Assorted. 
Asst.    Assistant. 
Arig.    August. 
Bal.     Balance. 
Bait.     Baltimore. 

B.  B.    Lill  Book. 

Bhl.  or  brl.     Barrel,  Barrels. 

Bdls.     Bundles. 

Bgs.     Bags. 

B.  I.    British  India. 

Bk.     Bank;  Book. 

Bkts.     Baskets. 

■^    BiU  of  Lading. 

Blk.    Black. 
BU.     BaVco. 
Bot.     Bought. 
BroH    Brought. 

-9;g    Bill  of  Sale. 

Bu.     Bushel. 

Bx.     Box  or  Boxes. 

c.  ^    Centa 

In  care  of. 

CaL     California;  Calendar. 


"/ 
^o 


Capi.     Captain. 

Cai?i.     Cashier. 

C.  B.     Cash  Book. . 

C.  H.     Court-House;  Custom-House. 

Cks.     Casks. 

cm.     Clerk. 

Co.     Company;  County. 

C.  0.  D.     Cash  (or  Collect)  on  Delivery. 
Coll.     College;  Collector;  Colleague. 
Con.  (L.  contra).     Against;  In  opposition. 
Conn,  or  Ct.     Connecticut. 

Cor.  Sec.     Corresponding  Secretary. 
Cr.     Credit;  Creditor. 

Ct.  or  ct.     Cent.— (L.  Centum).     A  hundred. 
Cts.  or  cts.     Cents. 

Cwt.  or  cwt.     (L.   Centum,  100,  and  E.  weiglU).     A. 
hundred  weight. 

D.  B.     Day  Book. 

D.  C.     District  of  Columbia.  — (It.  i>aC'np«).    Again, 

ar  From  the  beginning. 
d.  d.     Days  after  date. 
Dec.     December. 
Bel.     Delaware;  Delegate. 
Bejit.     Department;  Deponent. 
Bft.mdft.     Draft;  Defendant. 
Disci.     Discount. 

Div.     Dividend;  Division;  Divide;  Divided;  Divisor. 
Do.  do.  or  ".     (It.  Ditto).     The  same. 
Doz.  or  doz.     Dozen. 
Dr.     Debtor;  Doctor. 
Dray.     Drayage. 

d.  s.     Days  after  sight. 
ea.     Each. 

H.  and  0.  E.     Errors  and  omissions  excepted. 
Ed.     Editor;  Edition. 

E.  E.     Errors  excepted. 

e.  g.    (L.  exempli  gratia).     For  example. 
Esq.  or  Esgre.     Esquire. 

Etc.,  etc.,  or  <tc.     (L.  et  acteri,  ceeterm,  ccetera).     And 

others;  and  so  forth. 
Exch.     Exchequer;  Exchange. 
Exec,  or  Exr.    Executor. 
Execx.  or  Ex'x    Executrix. 
Ex.     Express;  example. 
Ei-p.     Export;  Exporter;  Expense. 
Feh.     Februarj'. 


243 


244 


ABBREVIATIONS    AND    CONTRACTIONS. 


Fir.  Cfc  fir.     Firkin. 

Fla.     Florida. 

Fo.  or  Fol.     Folio, 

F.  0.  B.     Free  on  Board. 

Fo'd    Forward. 

Fr't    Freight. 

Ft.  or  ft.     Foot;  Feet;  Fort 

Fth.     Fathom. 

Fur.  or  fur.     Furlong. 

Ga.     Georgia. 

Gal.  or  gal.     Gallon;  Gallons. 

Or.  OT  gr..     Grain;  Grains. 

Hdkf.     Handkerchief. 

Bf.  elits.     Half  Chests. 

nhtl.  or  hhd.     Hogshead. 

Son.     Honorable. 

Sund.     Hundred. 

I.  B.     Invoice  Book. 

/.  e.  or  ie.     (L.  Id  at).     That  is. 

lU.    Illinois. 

In.    Inch;  Inches. 

Ind.     Indiana;  India;  Indian;  Index. 

Ind.  T.     Indian  Territory. 

Ins.     Insurance. 

inst.     Instant, — in  the  present  luonlli. 

Int.  or  int.     Interest. 

In  trans.     (L.  In  transitu).     In  the  passage. 

Iiiv.     Invoice. 

Inti'i.    Inventory. 

/.  0.  U.    1  owe  you — an  acknowledgment  for  money. 

Jan.     January. 

Jr.     Junior. 

Fan.     Kansas. 

£y.     Kentucky. 

Fg.    Keg. 

X.,  lb.,  or  ib.     (L.  Libra).     A  pound,  in  weight. 

L.,  I.,  or  £.     A  pound  sterling. 

La.     Louisiana. 

Lat.  or  Uit.     Latitude. 

/y    Letter  of  Credit. 

Zed.     Ledger. 

L.  F.     Ledger  Folio. 

£.  S.     Left  side. — (L.  Locus  Sigilli).     Place  of  the 

Seal. 
Han.     Manitoba. 

Manvf.     Manufacture;  JIanufacturer, 
Mar.     March;  Maritime. 
Jilass.     Massachusetts. 
Ud.     Maryland. 
JUdse.     Merchandise. 
Mc.     Maine. 
JUem.     Memorandum. 

Meniers.  or  MM.     (F.  Messieurs).     Gentlemen ;  Sirs. 
Midi.    Michigan. 


Minn.     Minnesota. 

Miss.    Mississippi. 

Mme.     Madame.  —  Mmex.     Mcsdames. 

Mo.     Missouri. 

Mo.  or  mo.     Month. 

Man.    ISIonday. 

Mont.    Montana. 

Mr.    Master,  or  Mister. 

Mrs.     Mistress,  or  Missis. 

MS.     Manuscript. 

MSS.     Manuscripts. 

N.  A.     North  America. 

N.  B.     New   Brunswick.— (L.    Kota  Bene).     Note 

well,  or  take  notice. 
F.  C.     North  Carolina. 
N.  Dak.     North  Dakota. 
Feb.     Nebraska. 
JVer.     Nevada. 
N.  F.     New  Foundland. 
N.  n.     New  Hampshire. 
N.  J.     New  Jersey. 
N.  Mex.     New  Mexico  Territory. 
Fo.  or  jj.     (L.  Fuint:ro).     Number. 
Fov.     November. 
F.  P.     Notary  Public. 
F.  S.     Nova  Scotia;  New  Style  (since  17S2). 
F.  r.     New  York. 
0.     Ohio;  Old. 
^.     Per  cent. 
Oct.     October. 
0.  F.     All  Correct. 
Ont.     Ontario. 
Oreg.     Oregon. 
Oz.  or  oz.     Ounce  or  ounces. 
P.  or;).     Page:  Pint;  Pole;  Part 
f.     Per. 

Pa.     Pennsylvania. 
Payt.     Payment. 
Pd.     Paid. 

Per  an.  or  per  an.    (L.  Per  annum).     By  the  year. 
Per  cerit. ,  per  cent. ,  Per  ct. ,  or  per  ct.     (L.  Per  centum). 

By  the  hundred. 
Pk.  or  pk.     Peck. 
Pkg.     Package. 

P.M.     rostMi\filcT;(L.  Post  Meridiem).   Afternoon. 
P.  0.     Post  Onicc. 
P.  0.  D.     Pay  on  Delivery. 
P.  0.  0.     Post  Office  Order. 
pp.    Pages. 

jPr.,  pr.,  or  ^.     (L.  per).     B}'. 
prox.     Proximo;  the  next  month. 
Prcm.     Premium. 

P.  S.     (L.  Post  seriptum).     Postscript. 
Pes.     Pieces. 
Pub.     Public;  Publisher. 


ABBREVIATIUNS    AND    CONTRACTIONS. 


245 


Pict.  OT  pwt.     Pennyweight. 

Qr.  ov  g>:     Quarter  (iiS  pounds);  Quire. 

Qt.  or  q(.     Quart;  Quantity. 

Beed.     Received. 

Ret'd    Returned. 

-R.  /.     Rhode  Island. 

B.  li.     Railroad. 

$.     Dollar;  Dollars. 

S.  A.     South  America;  Soulli  Africa. 

8.  Dak.     South  Dakota. 

&it.     Saturda}'. 

S.  B.     Sales  Book. 

S.  C.     South  Carolina;  Small  Capitals. 

Sep.  or  Sept.     September. 

Shipi.     Shipment. 

Sr.     Senior. 

55.     (L.  Scilicet).     Namely. 

S.  S.     Steamship. 

St.     Saint;  Street;  Strait. 

Str.     Steamer. 

Sun.  or  Sund.     Sunday. 

Sunds.     Sundries. 

Siipt.     Superintendent. 

Tenn.     Tennessee. 


Tex.     lexas. 

Thurs.     Thursday. 

Treas.     Treasurer. 

Ult.,  ult.,  or  ulto.     (L.  ultimo.)     La.sl,  or  of  the  la.st 

month. 
U.  8.  A.  United  States  of  America;  United  States 

Army. 
U.  S.  M.     United  States  Mail. 
Va.     Virginia. 
Vice  Pres.     Vice  President. 
Viz.  or  viz.     (L.  videlicet).     Namely;  To  wit. 
Vol.  or  vol.     Volume. 
Vt.     Vermont. 

^    Waybill. 

WasJi.     Wa.shington. 

Wed.     Wednesday. 

W.  I.     West  India;  West  Indies. 

Wis.     Wisconsin. 

Wt.  or  wt.     Weight. 

W.  Va.     West  Virginia. 

Wyo.     Wyoming. 

T.  or  Yr.     Year. 

Yd.  or  yd.     Yard. 


BUSINESS  FORMS. 


FoiiM    1. 
AKTICLES   OF  COPARTNERSHIP. 

girtirlW  of  ^opartncrSihip,  viade  the  first  day  of  March,  one  thousand  eight  hundred 

ninety ,  hetwccu  V.  U.  £'va)is,  of  Woodbury,  X.  J.,  of  the  first  2)art ,  and  Geo.  E.  Martin, 

of  Philadelphia,  Pa.,  of  the  second  part,  witnesscth  asfoUoivs: 

Whcrcaji  the  ^forties  hereimto,  having  muttial  cojifidence  in  each  other,  do  this  day  form 
with  each  other  a  copartnership  under  the  firm  name  of  C.  R.  Evans  £  Co.,  for  the  purpose  of 
conducting  a  general  merchandising  business  at  1 22-124  Main  St.,  Woodbury,  N.  J.,  under  the 
following  terms  and  conditions,  to  wit : 

1.  Tliat  the  said  C.  R.  Evans  of  the  first  part  shall  contribute  the  entire  resources  of  his 
late  busi7icss  located  at  122-124  Main  St.,  Woodbury,  If.  J.,  as  per  bill  of  sale  executed  under 
even  date,  less  the  liabilities  which  are  to  be  paid  by  the  firm  of  C.  R.  Evans  £  Co.,  making  a 
total  net  investment  of  Seven  TJwusand  Eight  Hundred  Forty  Dollars. 

2.  Tlie  said  Geo.  E.  Mai-tin  of  the  second  part  shall  contribute  cash  to  the  anwunt  of 
Seven  Thoumnd  Eight  Hundred  Forty  Dollars. 

3.  Tlie  capital  so  formed  is  to  be  used  and  enjoyed  in  comnwn  between  than  for  the  prose- 
cution and  managetnent  of  said  busiiiess,  to  their  mutual  benefit  and  advantage. 

4-  Both  parties  shall  devote  their  entire  time  to  the  business  and  shall  share  gair.s  and 
assets  equally,  and  bear  losses  equally.  Each  partner  is  entitled  to  draw  One  Hundred  Dollars 
per  month  for  private  use. 

^n  Witnes.9'  ^i'hereof,  the  parties  hereto  have  hereunto  set  their  hands  and  seah,  in  dupli- 
cate, the  day  and  year  first  above  written. 

Signed,  sealed  and  delivered  in  ]^  C.  R.  Evans.  [l.  s.] 

the  presence  of  \  Geo.  E.  Martin,     [l.  s.] 

Tnos.  II.  Betts. 

NoTB. — Articles  af  Copartnership  are  not  executed  under  seal  in  all  states.  You  are  to  conform  with 
the  requirements  of  your  state  in  writing  legal  forms  of  any  kind.  Consult  your  commercial  law  text  book 
and  the  teacher  whenever  in  doubt. 

Form  2. 
articxes  of  agkeeiment. 

glrticIr.S  of  "^nrfftunrt,  made  the  first  day  of  April,  one  thousand  eight  hujidred  ninety- 
-,  between  F.  J.  Schwartz  and  Andrew  Schwartz,  of  the  firm  of  F.  J.  Schwartz  £•  Co., 


parties  of  the  first  part,  and  A.  P.  Fenn  of  the  second  part,  all  of  Tell  City,  Itidiana,  wit- 
nesscth as  follows  : 

1.  The  parties  above  named  have  agreed  to  become  copartners  in  business,  and  by  these 
presents  do  agree  to  be  copartners  together  under  and  by  the  firm  name  of  F.  J.  Schwartz  £  Co., 
in  the  business  of  merchants  and  dealers  in  general  merchandise,  at  the  said  city  of  Tell  City, 
State  of  Indiana,  the  partnership  to  commence  on  the  date  of  this  agreement  and  continue  five 
years,  wdcss  sooner  dissolved  by  consent  of  all  the  partners. 

2.  To  that  end  and  purpose  the  said  parties  of  the  first  part  shall  contribute  the  resources 
of  their  late  business,  located  at  642  Jefferson  Street,  as  per  bill  of  sale  executed  under  even  dale 

•24r, 


Bl'SINKSS    FORMS.  247 

here7vith,  less  the  liabilities  tohich  are  to  he  paid  hy  the  new  firm,  making  a  net  investment  of 
Tliirty  TJioi(sand  Dollars,  of  which  each  invests  one  half,  and  the  said  party  of  the  second  jyart 
shall  contribute  Ten  llwusand  Dollars  «t  cash. 

S.  At  all  times  dtiriny  the  continuance  of  their  copartnership  they  and  each  of  them  shall 
give  their  attendance,  and  use  their  and  each  of  their  best  endeavors,  and  to  the  titmost  of  their 
skill  a7ul  poiver  exert  themselves  for  their  joint  interest,  profit,  benefit  and  advantage,  and  tridy 
employ,  buy,  sell  and  merclmndiso  ivith  their  joint  stock,  and  the  increase  thereof  in  the  business 
aforesaid,  and  also  that  they  shall  and  will  at  all  times  during  the  said  copartnership  bear,  pay 
and  discharge  equally  between  them  all  rents  and  expenses  that  may  be  required  for  the  manage- 
ment and  prosecution  of  said  business;  and  that  all  gains,  profits  and  increase  that  shall  come, 
grow  or  arise  from  or  by  means  of  their  said  business  shall  be  equally  divided  between  the  said 
partners,  and  all  losses  by  bad  commodities,  uncollectible  debts  or  otherwise  shall  be  borne  and 
paid  betioeen  them  equally. 

Jf.  Oiuing  to  their  iinequcd  investments  each  partner  is  to  he  allowed  six  per  cent  interest  on 
the  sum  or  sums  hy  him  invested,  and  to  be  charged  six  per  cent  interest  on  all  withdrawals, 
said  interest  to  be  adjusted  at  the  time  of  closing  the  books. 

5.  Each  of  the  parties  may  drato  from  the  cash  of  the  joint  stock  One  Hundred  Fifty 
Dollars  per  month  for  his  oivn  use,  the  same  to  he  charged  on  accoxmt,  and  none  of  them  shall 
lake  ami  further  sum  for  his  own  use  without  the  consent  of  the  other  partners  in  writing. 

^It  WitttCji,a  ^t'hcvcof,  the  parties  hereto  have  hereunto  set  their  hands  and  seals,  in  dupli- 
cate, the  day  atid  year  first  above  writien. 

Signed,  sealed  and  delivered  in  \  B\  J.  Schwartz.  [seal.] 

the  presence  of  \  Andrew  Schwartz,     [seal.] 

Chas.  M.  Brucker.  a.  p.  Fenn.  [seal.] 

Note. — Read  note  under  form  1. 

Form  3. 

quit-claim  ijeeo. 

S;bi.S  ^ittlcntnte,  made  the  Jlrst  day  of  May,  in  the  year  of  our  Lord  one  thousand  eight 

hundred  ninety ,  betxvcen  J.  B.  Luckey  {unmai-ried)  and  W.  V.  C7iambcrs  (unmarried) 

of  the  city  of  Loiiisville,  County  of  Jefferson  and  State  of  Kentucky,  of  the  first  part,  and 
Chas.  F.  Grainger  of  the  same  2)lace,  of  the  second  part. 

WitttCS'.SCtll,  Tliat  the  said  parties  of  the  first  jmrt,  in  consideration  of  the  sum  of  Tliree 
Tliousand  Two  Hundred  Fifty  Dollars  {SS250)  to  them  in  hand  paid  by  the  said  party  of  the 
second  part,  the  receipt  of  ichich  is  hereby  confessed  and  acknowledged,  have  bargained,  sold, 
remised  and  quit-claimed,  and  by  these  presents  do  bargain,  sell,  remise  and  quit-claim  u7ito 
the  saidjmrty  of  the  second  part  and  to  his  heirs  and  assigns  forever,  all  that  tract  and  piarcel 
of  land  situate  in  the  city  of  Louisville,  County  of  Jefferson  and  State  of  Kentucky,  and 
more  particularly  distingidshed  as  lots  numbers  sixteen  (16)  and  seventeen  (17)  as  laid  down  in 
the  original pilat  of  the  city  of  Louisville.  luj.  Said  lots  are  sitxtate  on  the  south  side  of  Main 
street,  and  are  seventy  (70)  feet  in  width  front  and  rear,  and  are  one  hundred  sixty  (160)  feet 
deep.  Together  toith  all  and  singular  the  hereditaments  and  appurtanances  thereto  belonging, 
or  in  any  wise  apjwrtainitig,  and  the  reversion  and  reversions,  remainder  and  remaimlei-s, 
rents,  issues  a?id  jjrofits  thereof,  and  all  the  estate,  right,  title,  interest,  claim  and  demand 
whatsoever,  of  the  said  parties  of  the  first  part,  either  in  law  or  equity,  of,  in  and  to  the  above 
bargained  premises,  with  the  said  hereditaments  and  appurtanances,  to  have  and  to  hold  the 
said  premises  to  the  said 2)arty  of  the  .second  part,  his  heirs  and  assigns,  to  the  sole  and  proper 
benefit  and  behoof  of  the  said  party  of  the  second  part,  his  heirs  and  assigns  forever. 


248  IIUSIXESS    I'OKMS. 

^n  ^'itnr.S.S  ^i'hcrfOf,  Tltc  jmrtieH  of  the  fust  part  have  hereunto  set  their  hanih  and  seal* 
the  day  and  ijear  fir.^t  above  written. 

Signed,  sealed  arid  delivered  in)  J.  B.  Lvckey.  [seal.] 

the  presence  of  )  W.  Y.  Chamhkks.     [seal.] 

G.  P.  Weedmax. 

KoTE. — Wlienever  required  the  acknowledgment  is  the  same  a.s  in  ii  wiirniniy  deed.  (.See  fonn  100  on 
your  Voucher  File.) 

l''0UM  4. 

HILL   OF  SALE. 

^now  gill  |tttn  bg  Chcse  gccscntS,  Tlmt  we,  C.  0.  Dimviddie  and  Oias.  T.  Platl,  of  the 
city  of  Rochester,  County  of  Monroe,  and  State  of  New  York,  of  the  firm  of  C.  0.  Dinwiddie 
£  Co.,  parlies  of  the  first  part,  in  consideration  of  the  sum  of  Nine  Thousa7id  Dollars  to  us  in 
hand  2>aid  by  Jno.  R.  Cassel,  of  the  firm  of  C.  0.  Dinwiddie  X-  Co.,  of  the  city,  county,  and  state 
aforesaid,  of  the  sec07id  part,  the  receipt  of  which  is  hej'chy  acknowledged,  have  bargained  arid 
sold,  arid  by  these  presents  do  grant  and  convey,  unto  the  said  jicrty  of  the  second  part,  our 
interest  in  the  following  resources  of  the  firm  of  C.  0.  Dinwiddie  £  Co.,  to  wit:  Cash  on  deposit 
tw  the  Merchants  Bank,  SIGOOO;  note  drawn  by  Geo.  Smith,  $500;  note  drawn  by  Edwyn 
Leibfreed,  SJfiO ;  amount  due  from  Frank  E.  Schwartz,  S~80;  amount  due  from  Jno.  D. 
Malone,  S64O;  amount  due  from  Jas.  S.  Wilson  £  Son,  $325  j  shipment  made  to  Grainger  £ 
Co.,  Louisville,  A'y.,  $625;  shipmerit  made  to  Brown  £  Co.,  Philadelphia,  $392;  making  a 
total  of  Tliirtecn  Tliousand  One  Hundred  Sixty-two  Dollars  ($13162).  On  condition  that  the 
said  parly  of  the  second  part  assumes  tlie  fotloioing  liabilities  of  the  firm  of  C.  0.  Dinwiddie  £ 
Co.,  to  wit:  Xotc  drawn  by  the  firm,  of  C.  0.  Dinwiddie  £  Co.,  favor  of  Ferd.  Becker,  $1500 ; 
amount  due  R.  C.  Howell,  $1000 ;  amount  due  Philip  Smith  £  Co.,  $500;  amount  due  TJieo. 
Schwartz,  $1162;  making  a  total  of  Four  Thousand  One  Hundred  Sixty-two  Dollars. 

Co  jRavc  anil  to  ?lolil  the  same  unto  the  said  party  of  the  second  part  and  his  legal  repre- 
sentatives forever. 

TJie  said  2>arties  of  the  first  part  hereby  covenaiit  and  agree  to  and  with  the  said  party  of  the 
second  part  tJtat  they  are  possessed  of  the  full  right  and  title  to  their  interest  in  the  property 
hereby  conveyed,  and  that  they  will  warrant  and  defend  the  same  in  the  quiet  and  peaceful j)OS- 
session  of  the  said  party  of  the  second  part  against  the  lauful  claims  of  all  persons  whomsoever. 

^tt  ^fitnrSSi  ^i'hcrrof,  we  have  hereunto  set  our  hands  and  seals  this  first  day  of  May,  in 

the  year  of  our  Lord  one  thousand  eiqht  hundred  ninety . 

C.  0.  Dinwiddie.     [seal.] 
Chas.  T.  Platt.       [seal.] 

FOKM   5. 
PARTNEKSHH»   AGREEMENT. 

girticlfS'  of  SVfl'^tflttrnt,  made  the  tenth  day  of  May,  one  thousand  eight  hundred  ninety , ; 

between  J.  IT.  Graves,  of  Galveston,  Texas,  of  the  first  part,  and  L.  W.  Warrick,  of  the  sarne^ 
place,  of  the  second  part,  witriesseth  as  follows: 

1.  The  parties  above  named  have  agreed  to  become  copartners  in  business,  and  by  these 
presents  do  agree  to  be  copartners  together,  under  and  by  the  firm  name  of  J.  W.  Graves  £  Co., 
in  the  business  of  merchants  and  dealers  in  groceries,  at  the  said  city  of  Galveston,  the  partner- 
ship to  commence  on  the  date  of  this  agreement  and  to  co7itinue  until  dissolved  by  mutual  conseni 
of  the  partners. 


BUSINESS    FORMS. 


249 


2.  To  that  end  and  purpose  the  said  jiarty  of  the  first  part  shall  contribute  the  cash  and 
other  resources  and  the  good  will  of  h  is  late  business  located  at  GJfi  Chestnut  Street,  amounting 
to  Ten  Tliousand  Two  Hundred  Eighty  Dollars  (S102S0),  out  of  ivhich  the  liabilities  of  the 
said  business,  amounting  to  Three  Tltousand  Dollars  ($3000)  are  to  be  paid,  making  a  net 
investment  of  Seven  Thousand  Two  Hundred  Eighty  Dollars  {S72S0),  as  per  bill  of  sale  executed 
on  even  date  herewith.  And  the  said  party  of  the  second  part  shall  contribute  his  share  of  the 
resources  of  the  late  firm  of  C.  W.  Hammond  £  Co.,  amounting  to  Eleven  Thousand  One  Hundred 
Eighty  Dollars  (SlllSO),  out  of  which  the  liabilities  of  the  late  firm,  amounting  to  Three  Thous- 
und  Nine  Hutidred  Dollars  ($3900),  shall  be  paid,  mahi?ig  a  net  investment  of  Seven  Thousand 
Tivo  Hundred  Eighty  Dollars  {S72S0),  as  per  bill  of  sale  executed  on  even  date  herewith;  the 
capital  so  formed  to  be  used  in  common  between  them  for  the  prosecution  and  management  of 
the  said  business  to  their  muttml  benefit  and  advantage. 

S.  And  it  is  agreed  by  and  between  the  said  parties  that  if  any  of  the  resources  itivested  by 
■either  of  the  pat'tnei's  shall  2^r  ore  worthless  in  full  or  in  part,  such  worthless  resources  shall  be 
■charged  to  the  partner  investing  same. 

Jf.  Each  of  the  partners  may  draw  from  the  ca.fh  of  the  firm,  the  sum  of  Twentyfive  Dollars 
{$25)  2)er  week  for  his  private  use,  and  neither  of  them  shall  take  any  furlher  sum  for  his  own 
separate  use  loithout  the  consent  of  the  other  in  writing ;  and  any  such  further  sum,  taken  with 
such  consent,  shall  draw  interest  at  the  rate  of  six  pier  cent,  per  annum,  and  shall  be  payable, 
together  icilh  the  interest  due,  within  one  month  after  notice  in  writing  given  by  the  other  party 
requiring  such lyayment. 

5.  The  said  parties  shall  share  gains,  losses  and  assets  equally. 

6.  The  said  party  of  the  first  j)art  shall  devote  his  time  to  the  management  of  the  store, 
make  the  purchases,  and  give  the  remainder  of  his  time  and  attention  to  the  Misiness  as  sales- 
man, and  the  said  party  of  the  second  part  shall  devote  his  time  and  attention  to  the  business  as 
salesman  and  shall  keep  the  books  of  account,  to  which  both  parties  shall  have  access  at  all  times. 

fitt  Witttf.S.S'  Whcrfof,  the  parties  hereto  have  hereunto  set  their  hands  and  seals,  in  dupli- 
cate, the  day  and  year  first  above  written. 

Signed,  sealed  and  delivered  in)  J.  W.  Graves.        [seal.] 

the  presence  of  \  L.  "W.  Warrick,     [seal.] 

K.  D.  McCoy. 


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INDEX. 


Abbreviations  and  contractions,  243. 

Abstract  cash  account,  128. 

Abstract  of  cash  sales,  126. 

Abstract  jmrcliase  book,  120. 

Abstract  purcliasc  ledger,  121. 

Abstract  of  goods  returned,  130. 

Abstract  of  time  sales,  122,  123. 

Abstract  sales  book,  90. 

Accei)tance,  52.  09. 

Account,  1. 

Accounts  classified,  30,  88,  92. 

Account  sales,  81,  83. 

Account  sales  book,  101. 

Accountant's  rejjort,  105. 

Allowance  accounts,  55. 

Annual  report,  170. 

Appendix,  227. 

Articles  of  copartnershij),  64,  70,  87. 

Assignment,  85,  187. 

Balance  sheet,  34,  30,  39,  62,  75,  84. 

Bank  account,  25. 

Banking,  191,  220. 

Bank,  national.  193. 

Bank,  state,  195. 

Bank,  ]irivate,  195. 

Bank  officers,  195,  196. 

Bank  draft,  52.  53. 

Bill  of  sale,  04,  76,  87. 

Bill  book,  78,  79. 

Bills  receivable,  22. 

Bills  payable,  23,  24. 

Blotter,"  1. 

Bond,  94. 

Bookkeeping,  1. 

Branch  house,  99. 

Business  results,  7,  229,  231. 

Business  statements,  23G,  237. 

Cash  account,  9,  41,  44,  104,  128. 

Cash  book,  41,  42,  88,  104,  164. 

Cash  department,  118. 

Cashier,  bank,  196. 

Cashiers  statement,  95,  127. 

Cash  sales,  16,  18,  47,  91. 

Cash  tickets,  91. 

Cash  receii>ts  form,  127. 

Certificate  of  incorjioration,  173. 

Certificates,  corporation,  175. 

Changing  trom  single  to  double  entry, 

234. 
Clearing  houses,  225. 
Checks,  26,28,  44. 
Clerks'  daily  sales,  125. 
Closing  accounts,  36,  37,  38,  39,  63. 
Collection  iia])er,  205. 


229 


Collection  tickler,  202,  204. 
Collection  register,  200,  204. 
C.  0.  D.  account,  236. 
Commercial  paper,  54. 
Commercial  agencies,  99. 
Commission,  76. 
Commission  merchants,  76. 
Commission  business,  99  to  116. 
Commission  sales  book,  103. 
Consignments.  77,  81,  S3. 
Consignment  ledger,  100,  108. 
Corporations,  172  to  180. 
Corporations,  how  formed,  172. 
Cor})oration  books,  177  to  180. 
Corjjorations,  limited,  188. 
Cust  book.  160. 
Credit  man,  99.  119. 
Credit  memorandum,  115,  131. 
Customers'  ledger,  92,  93. 
Cutters  stock  book,  161,  162. 

Day  book,  1,  229,  230. 

Day  hook-journal,  1,  2,  3. 

Dealers'  bill  book,  203,  204. 

Deed,  64,  76. 

Department  store  business,  117  to  158. 

Dei)artinent  store,  advantages  of,  117. 

Dei)artment  charges  form,  120,  121. 

Deposit,  25. 

Deposit  ticket,  25. 

Dictionary  of  commercial  terms,  238. 

Directors,  corporation,  177. 

Directors,  bank,  195. 

Discount  paper,  206. 

Discount  register,  200,  201. 

Discount  tickler,  202,  204. 

Division  of  labor,  118,  164. 

Dividend  book.  179. 

Dividend  declared,  187. 

Doubtful  resources,  236. 

Double  entry,  1  to  237. 

Drafts,  50,  51,  53,  00. 

Draft  register,  196,  197. 

Endorsements  (.«('c  imlorsenwnts). 
Errors  in  trial  balance,  49,  50. 
Errors,  correction  of,  50,  234. 
Expense  account,  17,  227. 

Gain,  net,  how  found,  35,  229,  234. 
General  bookkeejiing  department,  118. 
Goods  returned,  130. 
Good  will,  87,  166,  171,  182. 

Impression  account  sales  book,  101,  102. 
Impression  sales  book,  161. 


250 


INDEX. 


251 


Index,  vowel,  108. 

Indcxins:,  108. 

Individiiul  ledger,  198,  -^00,  206. 

Indorsements,  28,  85. 

Installment  scrip  book,  178. 

Interest  and  discount,  54,  55, 

Interest  on  jiartners'  accounts,  83,  155, 

Inventory,  abstract,  15S,  171,  186. 

Inventory  of  doubtful  resources,  236. 

Inventory  of  resources  and  liabilities,  33,  34, 

39,  99,  229,  234. 
Inventory  of  property,  14,  33,  34,  62,  75,  84. 
Invoice  book,  66,  67. 
Investments,  14,  64,  76,  87,  132,  159. 
Invoice  of  shipment,  77,  78. 

Joint  stock  companies,  188. 
Journal,  bankino;,  196. 
Journalizing,  1. 

Ledger,  1,  4,  5,  38,  93,  100,  104,  106,  108, 

Ledger  abstracts,  116,  156, 

Letters,  57,  61,  72,  110,  111,  113,  114, 

Letter  book,  106,  107, 

Liabilities,  18, 

Liability  inventories,  158, 

Loose  leaf  ledger,  100. 

Loose  leaf  metliod,  101. 

Loss  and  gam  account,  36,  37,  38,  229,  234. 

Loss,  net,  how  found,  35,  227,  229,  234. 

Main  ledger,  106. 

Main  store  account,  109. 

Manufacturing  business,  159  to  187. 

Manufacturing,  cost  of,  159. 

Manufacturing  books  closed,  171. 

Market  quotations,  109. 

Merchandise  account,  14,  15,  117,  159. 

Merchandise  inventories,  33, 39,  62,  75,  84,  98. 

Merchandise  discounts,  iJS,  69,  70. 

Mill  account,  164. 

Minute  book,  178. 

Monthly  statements,  62,  84. 

Notes,  22,  23,  24. 
Notes  discounted,  56,  57,  60, 
Note  ledger,  78,  79. 
Notice  of  dissolution,  86. 

Officers,  177. 
Official  records,  178,  181. 
Omissions  corrected,  234. 
Orders  classified,  50,  109. 
Order  book,  91,  92. 
Order  sheets,  161. 

Paging  before  posting,  108. 
Partners'  accounts,  86. 


Partnership  dissolution,  85,  149. 

Partnership  asreement,  64.  76,  87,  117. 

Partnerships,'64,  76,  85,  87,  117. 

Pass  book,  25,  93. 

Pav  roll  book,  128,  163. 

Paying  off,  129. 

Pay  roll  nicmoranduni,  130, 

Personal  accounts,  4,  5,  18,  19, 

Petty  cash  book,  163,  167,  168, 

Power  of  attorney,  9,  181, 

Posting,  1,  3,  8,  29,  47. 

Principal's  account,  83. 

Proprietor's  account,  10,  11. 

Proving  cash,  46,  48,  58,  62. 

Purchases  department,  119. 

Quit  claim  deed,  85. 

Questions,  40,  63,  S4,  98,  116,  189,  235. 

Real  estate,  64. 
Eebates,  131. 
Receiving  book,  108. 
Recei])ts,  16,  18,  21. 
Red  ink,  use  of,  10,  11. 
Reports,  21,  2(), 
Resources,  9. 
Ruling,  6,  10,  19. 

Rules  for  debiting  and  crediting,  1,  9,  10,  14, 
17,  18,  22,  23,  51,  52,  55,  237, 

Sales  book,  65,  103,  162. 

Sales  ledgers,  126. 

Sales  department,  119. 

Sales  tickets,  90,  122. 

Sliipments,  77,  80,  81. 

Shipjiiiig  receipts,  58. 

Shi|inu'nt  book,  109. 

Shii)ment  ledger,  104,  105,  109. 

Single  entry,  1,  227  to '235. 

{Single  entry  as  practiced  in  business,  235. 

Statements,  monthly,  32,  62,  75,  84. 

Stock  certilicate,  72,  85. 

Stock  certificate  and  transfer  book,  179,  180. 

Stock  ledger,  178,  205. 

Stock  transferred,  187. 

Stock  tickets,  162, 

Subscription  book,  178. 

Summary  sheets,  122,  123. 

Suniinary  of  daily  ..:les,  123,  124. 

Sundry  accounts,  131. 

Suspense  account,  236. 

Teller,  l)ank,  197. 

Terr  IS  of  oale,  65,  66,  71. 

Ticket  system,  91. 

Time  index,  122. 

Trial  balance,  6,  33,  49,  62,  75,  84,  89,  237. 

Trial  balance  errors.  49. 


THIS  BOOK  IS  Dtn:  ON  TITE  LAST  DATE 
STAMPED  BELOW 


AN  INITIAL  FINE  OF  25  CENTS 

WILL  BE  ASSESSED  FOR  FAILURE  TO  RETURN 
THIS  BOOK  ON  THE  DATE  DUE.  THE  PENALTY 
WILL  INCREASE  TO  SO  CENTS  ON  THE  FOURTH 
DAY  AND  TO  S1.0O  ON  THE  SEVENTH  DAY 
OVERDUE. 


JUL  25  1947 

LD  21-100m'12.Ma(879Gs) 

YD  05867 


^ 


221704 


